Following a restructuring agreement signed today between the debt-crushed shipowner Torm, their banks, and their time-charter partners, Torm’s stock has shot up over 20 percent on the Nordic stock exchange today.
The restructuring agreement secures TORM substantial deferral of bank debt, new liquidity in the form of a USD $100 million working capital facility, and savings from the restructured time charter book. Torm told reporters today that this will enable them to become cash flow positive even at the current rate levels.
This agreement also buys Torm some time to secure future, long-term capital structure.
“It has taken extraordinarily long time to reach this agreement and inflicted very high costs on the Company, but TORM will now be able to continue its business even in a continued difficult market,” says Chairman of the Board N. E. Nielsen.
“I am extremely satisfied that an out-of-court agreement has been signed. It has been a long process, but I am very pleased that our long-standing time charter partners and the banks have been supportive. TORM’s organization now looks forward to devoting all of its focus solely on the customers and operations again,” says CEO Jacob Meldgaard.
More detail on the restructuring can be found by clicking HERE