torm

Crushed By Debt, Torm Responds to Latest Claims By Danish Media

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July 19, 2012

tormCOPENHAGEN–Financially-troubled Danish shipper Torm A/S (TORM.KO) said Thursday it is still in talks to seal a long-term debt refinancing deal that will allow it to stay afloat, responding to media reports claiming the company and its banks are about to sign a deal.

“Due to stories today in the Danish media, Torm wants to reconfirm that negotiations are still ongoing with relevant parties with the aim of reaching a long-term financial solution,” the company said in a statement.

“Torm will issue a statement once a deal has been concluded,” it said.

The company has long suffered from weak shipping rates and a towering debt, which currently stands at around $1.9 billion. It has reached an agreement in principle with its banks for a deal that will freeze debt payments and inject $100 million of fresh capital, but so far the parties haven’t been able to finalize the talks.

– Flemming Emil Hansen, Dow Jones Newswires

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