Noteholders reject Rickmers Trust restructuring

Noteholders reject Rickmers Trust restructuring

Rickmers Trust Management has revealed that holders of the trust’s S$100m 8.45% notes due next year have not agreed to a revised restructuring plan, ratcheting up the pressure on the Singapore-based shipping trust.

The revised plan had included a partial redemption of S$60m of the principal in exchange for 60% of the enlarged units of the trust, which will reduce the outstanding principal amount under the notes to S$40m repayable in November 2023. Rickmers also proposed to issue 1.32bn new units representing 150% of the current number of units outstanding of the trust.

“The Trustee-Manager will prudently consider and assess alternative proposals for the restructuring of the Notes should such proposals be presented,” the company said in a release today. Moreover, the trust said it is in discussions with certain of its senior lenders in relation to a potential divestment of assets.

Rickmers had previously warned that if a restructuring was not completed then the company faced liquidation, resulting in zero return for investors. It has already offloaded a seven-year-old boxship for scrap.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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