The trust, which is at loggerheads with its noteholders over a restructuring plan, said on Tuesday that it was unable to pay a SGD4.26m interest payment due on 15 November on its SGD100m notes due in 2017.
“As a result of cross default and/or cross acceleration clauses contained in the loan agreements to which the trustee-manager or subsidiaries of the trust are a party, the trust will also be in default under such loan agreements,” Rickmers Trust Management (RTM) said.
“The trustee-manager is currently in discussions with its senior lenders to obtain standstills and/or waivers in respect of its obligations under the existing senior loan facilities.”
Last week a meeting with bondholders to vote on its financial restructuring was adjourned due to a lack of quorum.
“In view of the uncertain outcome of the discussions with senior lenders and the adjourned noteholders’ meeting, the trust is unable to demonstrate that it is able to continue as a going concern,” it stated.
The trust has asked for an immediate trading suspension of its units on the Singapore Exchange.
RTM has proposed a restructuring 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.
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.
If the proposal is not approved RTM plans to put the trust into liquidation.