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Rickmers Maritime restructuring approval from unitholders, but difficult bondholder vote yet to come

Rickmers Maritime restructuring approval from unitholders, but difficult bondholder vote yet to come
Rickmers Maritime has successfully passed the first hurdle to its financial restructuring with it approved by unitholders, however, the much more difficult issue of its bondholders awaits next week.

Unitholders voted 98.67% in favour of proposal that will see the listed-shipping trust issue over 1.3bn units despite the significant dilution they would suffer with it representing 150% of the outstanding units in the trsurt. The issue of the new units forms part of a proposal to SGD100m noteolders there would a partial redemption of SGD60m of the issue by way of an equity swap for 60% of units in the enlarged trust. While the maturity date of the remaining SGD40m in bonds will be moved to November 2023 from May next year.

While unitholders have approved the issue, getting the approval of bondholders remains a more difficult issue with a group demanding immediate repayment.

Rickmers Maritime will be holding a dialogue session with bondholders on Wednesday evening along with the Securities Investors Association Singapore (SIAS). The meeting comes ahead of a vote on the restructuring proposal by bondholders on 9 November.

Rickmers Maritime says the trust will be wound-up if investors do not approve the restructuring. Unitholders voted 90.09% in favour of a resolution to wind-up the trust if the restructuring is not approved. The trust warns investors that both unitholders and bondholders would receive nothing in a liquidation scenario.