D-Day postponed for Rickmers Maritime as bondholder meeting fails quorum

In a continuing stand-off between Rickmers Maritime and its bondholders a meeting of noteholders to vote on its proposed financial restructuring on Wednesday was postponed due to a lack of a quorum.

Bondholders due to vote a proposal on the SGD100m notes where there would a partial redemption of SGD60m of the issue by way of an equity swap for 60% of the units in an enlarged trust. While the maturity date of the remaining SGD40m in bonds will be moved to November 2023 from May next year.

However, Rickmers Trust Management (RTM) said that the meeting had failed to meet a quorum representing 75% of noteholders. As a result the meeting was adjourned to be held on a date between 23 November and 21 December.

A group of noteholders unhappy with the proposal is seeking immediate redemption of the bond issue. While for its part RTM has warned the trust will be wound-up if the proposals are not approved with its refinancing dependent on the restructuring being approved.

“Noteholders may need more time to evaluate the restructuring proposal. In the meantime, we will continue to engage noteholders, through small group meetings, with the objective of addressing Noteholders’ concerns more effectively,”Soeren Andersen ceo of RTM said.

He added a warning that: “There are critical consequences if we are unable to come to a decision soon, as the cash levels in two of our silos are almost depleted, threatening Rickmers Maritime’s ability to continue operating as a going concern.”

Posted 09 November 2016

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Marcus Hand

Editor, Seatrade Maritime News