Following the rejection by SGD100m noteholders of a proposed financial restructuring last December the further restructuring proposals had been sought for the embattled Singapore shipping trust.
Rickmers Trust Management (RMT) said they met with major creditor HSH Nordbank on 7 March to see if the senior lender’s financial advisor Ferrier Hodgson secured a “credible alternative restructuring proposal” to restructure the notes.
“The senior lender informed the Trustee-Manager that its financial adviser’s proposed restructuring proposal for the restructuring of the notes was not acceptable to the senior lender,” RMT said in a statement.
HSH Nordbank advised RMT to formulate a revised restructuring proposal. No further discussions on a restructuring proposal are ongoing between HSH Norbank and Ferrier Hodgson, with the restructuring of the notes likely to be further delayed.
The Trust is now seeking debt forgiveness on its existing loans from the senior lender, which has “indicated it maybe willing” given similar agreement from noteholders and other unsecured lenders with recovery that would be higher than the winding-up of the Trust.
“In all other cases, the senior lender indicated it would support an orderly winding-up of the Trust,” RTM said.
“Further to the above, the Trustee-Manager is currently in discussions with its advisers to formulate a new framework for restructuring the liabilities of the Trust and intends to present such new restructuring proposal to its creditors and noteholders when it has been finalized.”
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