Torm completes restructuring, fleet swells to 74

Torm completes restructuring, fleet swells to 74

Copenhagen: Torm has completed its comprehensive restructuring, recapitalising its balance sheet, by reducing the existing debt from approximately $1.4bn to approximately $561m by way of a lender debt writedown to current asset values against the issuance of warrants and a subsequent optional exchange of debt to equity.

As part of the restructuring, OCM Njord Holdings (Njord Luxco), a wholly owned subsidiary of entities owned by private equity giant Oaktree Capital Management, has contributed a fleet of 25 on-the-water and six newbuilding product tankers to Torm’s group. The result has been to the creation of one of the largest owner-operators of product tankers globally that is poised for growth with 74 owned product tanker vessels including LR2, LR1, MR and handysize vessels with an average age of approximately 10 years.

New A shares will be admitted to trading and official listing on Nasdaq Copenhagen by end of this month.

Torm said in a release it expects to make a pre-tax profit of between $100m and $140m this year.

“I am very pleased that Torm with this restructuring regains its financial and strategic flexibility. The restructuring and Torm’s strong operational performance provide a robust platform for the future as we set out for new horizons”, said the Danish firm’s CEO Jacob Meldgaard.

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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