Torm wins forbearance from lenders

Torm wins forbearance from lenders

Copenhagen: Denmark’s Torm is concluding a new restructuring deal with its lenders and Oaktree Capital Management. The original restructuring agreement expires on March 31.

At the end of this month, Torm was scheduled to commence amortizations on its ship financing, which could have led to a default. However, Torm has today obtained forbearance on potential events of default from a sufficient number of lenders until the new restructuring agreement is agreed, likely by April 23.

“The company has obtained this forbearance from certain lenders to avoid any doubt about Torm’s financial position whilst the complex restructuring process is finalised,” said chairman Flemming Ipsen.

Torm’s current cash position stands at $51m. The Danish bulker and tanker player entered restructuring three years ago, weighed down by $1.9bn of debts.

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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