Asia/Pacific News
Rickmers Maritime Warns of Winding Up Risk at Key Vote on Restructuring Plan
Rickmers Maritime has warned holders of S$100 million ($71.9 million) worth of its bonds that should they fail to accept the company's restructuring plan, the trust could face winding up and they could be left with little or nothing.
The decision is set to be made at an extraordinary general meeting (EGM) on October 31.
Under the proposal made on September 22, Rickmers Maritime will issue around 1.32 billion new units to current bondholders and swap S$100m of 8.45% notes due in May 2017 for S$40 million due November 2023.
If the restructuring is approved, Rickmers Maritime's noteholders are set to be given a one-time payment of S$500,000 ($359,400).
If it is not, the winding up of the Trust will be proposed.
"We understand that bondholders and shareholders are disappointed in this very difficult situation faced by Rickmers Maritime. It is our duty to try to create a future for the business and provide a platform to improve their returns," Soeren Andersen, CEO of Rickmers Maritime, said in a note earlier this month.
"Liquidation is the most value-destroying option where all stakeholders may recover the least amount or nothing at all. This is particularly true for noteholders, who are unsecured creditors, and the trust's owners, the shareholders."
