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
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 105,896 members that receive our newsletter.
Have a news tip? Let us know.
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,...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 105,896 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
