After losing 13 product tankers to Oaktree Capital Management earlier this year, Danish shipowner Torm has entered into an agreement with its 40+ lenders and Oaktree regarding a possible restructuring plan.
The specific details were not released, however according to Torm, the restructuring is expected to stipulate that the lenders will initially write down the company’s debt to the current asset values in exchange for warrants and may elect to convert part of the remaining debt into new equity in the Torm.
As of 30 June, the book value of Torm’s fleet was USD $1.2 billion. Based on broker valuations the fleet had a market value of USD 931 million. Torm is one of the largest product tanker companies in the world with a fleet of 43 tankers and two dry bulk carriers. The company also operates 53 additional ships.
Torm says Oaktree would contribute product tanker vessels in exchange for a controlling equity stake in the combined company. The agreement also envisages a new working capital facility.
It is expected that the restructuring will result in a substantial dilution of the existing shareholders in TORM. The final restructuring plan and transaction structure will be presented no later than first quarter of 2015.
SINGAPORE, April 24 (Reuters) – Demand for liquefied natural gas (LNG) to power ships will rise this year on attractive prices, while more dual-fuel vessels join the global fleet, industry executives said....
ROME (Reuters) – An Italian judge on Friday cleared three migrant sea rescue charities that had been accused of abetting irregular immigration in complicity with human traffickers, throwing out a case opened...
(Bloomberg) — The closure of one of the East Coast’s busiest ports after the collapse of Baltimore’s Francis Scott Key Bridge has so far not led to broad price increases,...
April 19, 2024
Total Views: 2192
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.