Rickmers Maritime Trust May Face Liquidation
[ Updated ] The Singapore-based Rickmers Maritime Trust has come to a sitatuation where the choice is between restructuring the securities in the company to less than half their current value or shutting down.
So it has warned the investors that if its proposed debt restructuring plan is not approved by its noteholders, it could be headed for a potential liquidation or judicial management.
The shipping trust, has asked for clemency from its creditors regarding $179.7 million of debt and a following $100 million of interest that it cannot pay, reported Bloomberg.
If Rickmers Maritime Trust is unable to restructure, it could be liquidated or placed in court receivership, which would likely result in a “total loss” for noteholders.
The company is requesting that to avoid liquidation similar to that of Hanjin bankruptcy, its debts be excused and in replacement $28 million for perpetual securities.
If the restructuring is approved, Rickmers Maritime would allow the company to continue to make coupon payments under the new securities, as well as share equity upside with and maximize value recovery for noteholders.
