Under a term sheet setting out the restructuring of Rickmers Holding financial liabilities, sole shareholder Bertram Rickmers is prepared to reduce his stake from 100% to 24.9% to allow key stakeholders to acquire 75.1% of the company as part of the restructuring plan.
Under the restructuring, which is subject to corporate approvals and restructuring of bond 2013/2018, Bertram Rickmers will make a cash contribution of EUR10m, relieve the group of a EUR10m shipyard liability, waive licensing fees up to Q1 2021, and secure a EUR10m back-up loan facility for possible future liquidity requirements. These would come on top of a EUR13m cash contribution he has already made.
In addition Bertram Rickmers would be willing allow creditors – HSH Nordbank, bondholders, and possibly one other bank, takeover 75.1% control of the company. Under the restructuring all liabilities of Rickmers Group would be assumed by a Luxembourg vehicle (LuxCo).
“A joint representative yet to be appointed by the bondholders shall be authorised to approve a sale of shares in Rickmers Holding AG held by the LuxCo following an investor solicitation process yet to be conducted and to distribute the proceeds to HSH Nordbank AG, the bondholders and possibly to one further bank, according to a defined allocation formula,” Rickmers said in a statement.
“The management board of Rickmers Holding AG has tasked a leading international auditing firm with providing an expert report on the possibility of successfully restructuring the Rickmers Group within the meaning of IDW Standard S6. In the current draft restructuring report, which is almost finalised, the auditing firm concludes that the Rickmers Group can be successfully restructured if all proposed restructuring measures are implemented.”
Rickmers owns 114 vessels totaling 5.875m dwt in total.
Two weeks ago Singapore-listed offshoot Rickmers Maritime Trust said it would winding-up after failing to agree a restructuring solution with creditors. Last October Rickmers Holding sold its 100% holding in Rickmers Maritime trustee manager to a company belonging to Bertram Rickmers.