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Torm misses loan deadline for restructuring

Torm misses loan deadline for restructuring
Struggling tanker owner Torm is in non-compliance with its loan terms as a restructuring deadline passes while negotiations with its lenders and Oaktree Capital Management continue.

The company's super senior working capital facility was extended at the end of August under terms including the agreement of a restructuring process with lenders by 20 November.

Torm has an agreement in place with Oaktree Capital Management for a possible restructuring, but that hasn't yet received unanimous support. Some lenders have have taken reservation of rights regarding a potential default under other provisions.

The Danish company does not expect that the default will be enforced while its negotiations continue with Oaktree and its lenders, a process it expects to conclude by the first quarter of 2015.