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.