The beleaguered Singapore-listed shipping trust has called an extraordinary general meeting (EGM) of unitholders on 31 October to approve a restructuring that would see the issue 1.32bn new units in the trust in an equity swap to partially redeem a SGD100m ($73.7m) bond issue due in May 2017. The remaining SGD40m maturity of the bond issue would then be extended until 2023.
The proposed restructuring has met with strong resistance from bondholders with a group seeking of noteholders seeking immediate redemption of the bond issue.
In a small extra sop to bondholders Rickmers Maritime is now offering a SGD500,000 one time coupon payment if the restructuring is successful.
“While this is not a material sum in the context of the face value of the MTNs, it is material to the current cash position of Rickmers Maritime. This is the maximum we are able to offer noteholders considering our liquidity needs to continue to operate,” said Soeren Andersen ceo of Rickmers Trust Management (RTM).
Meanwhile the trust warned again that it would be wound-up if the proposed financial restructuring is not approved.
“The board of birectors has considered the terms, rationale, and benefits of the proposed Issue and the proposed winding up. We are of the view that they are in the best interests of Rickmers Maritime and accordingly recommend that unitholders vote in favour of the resolutions,” stated Bertram Rickmers chairman of RTM.
If the new proposal is not approved Rickmers Maritime will not receive a new $260.2m debt facility and previously said it would no longer able to operate on a going concern basis as a result.
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