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Rickmers Maritime bondholders vote against restructuring, liquidation looms

Rickmers Maritime bondholders vote against restructuring, liquidation looms
Rickmers Maritime bondholders have voted against a financial restructuring proposal leaving the possibility of liquidation for the listed shipping trust.

Rickmers Trust Management (RTM) said that an extraordinary resolution tabled at a meeting of noteholders on Wednesday morning in Singapore was not passed. Noteholders voted heavily against the resolution with out of 315 votes cast, representing 78.8% of the principal amount SGD100m notes, with 67.3% or 212 votes against and 32.7% or 103 votes for.

Bondholders were voting on a proposed restructuring that would have seen 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 new $260.2m debt facility offered by an HSH syndicate to refinance the trust was contingent on the restructuring.

“The trustee manager will prudently consider and assess alternative proposals for the restructuring of the notes should such proposals be presented and continues to discharge its duties as the trustee- manager of the Trust in accordance with the Business Trusts Act and the Trust Deed to preserve value and maintain adequate liquidity for the Trust,” RTM said in a statement to the Singapore Exchange.

“The trustee-Manager is in discussions with certain of its senior lenders in relation to a potential divestment of assets for working capital purposes.”

RTM has repeatedly warned that a failure to agree the financial restructuring could result in the liquidation of the listed shipping trust.

The trust had been in lengthy discussions with bondholders after the previous meeting was postponed on 9 November due to a lack of a quorum.

An offshoot of Bertram Rickmers’, Rickmers Holding, the German company said it would have no impact on its financing.

Rickmers Holding had already moved to distance its self from the trust last month selling its 100% holding in the trustee-manager of Rickmers Maritime to Brick Holding International Invest owned by chairman and non-executive director Bertram Rickmers.

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