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Rickmers Maritime ultimatum - approve restucturing or face winding-upRickmers Maritime ultimatum - approve restucturing or face winding-up

Rickmers Maritime is proceeding to seek approval for its proposed financial restructuring despite objections from its bondholders, warning that winding-up is the other scenario.

Marcus Hand, Editor

October 7, 2016

1 Min Read
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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.

About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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