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.