Rickmers Group said on Wednesday that HSH Nordbank had “surprisingly” denied approval for the term sheet for financial restructuring, leaving insolvency as the nex step.
“HSH Nordbank has highly surprisingly informed Rickmers Holding that the board of HSH Nordbank has rejected the credit applications of Rickmers Group and denied approval to the term sheet dated 19 April 2017 and rejected further negotiations of the restructuring,” the company said.
The bondholders meeting scheduled for tomorrow to vote on financial restructuring was convened on basis of the term sheet.
“According to the assessment of the management board and supervisory board of Rickmers Holding the positive going concern prognosis of Rickmers Holding does therefore no longer apply. The management board of Rickmers Holding is forced to file for insolvency without undue delay,” Rickmers said.
The management board of Rickmers added it strived for restructuring in self administration and had initiated preparations. The bondholders meeting on 1 June will now only vote on electing a joint representative.
Under the planned restructuring HSH Nordbank would have become a major shareholder in Rickmers with Bertram Rickmers giving up 75.1% of his 100% ownership of the company.
Bertram Rickmers is from a five-generation German shipping family and the insolvency of such a major shipowners will send shockwaves through the country's shipping community.
Singapore-listed offshoot Rickmers Maritime filed for liquidation in April after bondholders failed to approve its restructuring plans in late 2016.