World News
TORM Sells Four More Tankers to Creditor
TORM A/S [NASDAQ:TRMD] (TORM) says it will sell four MR product tankers to entities controlled by one of its banks, Oaktree Capital Management (Oaktree) under terms set by its restructuring agreement.
Oaktree will place the vessels, the TORM Alexandra, TORM Agnete, TORM Arawa, and TORM Anabel, plus two additional vessels, under TORM's commercial management in a revenue-sharing plan.
"With one bank having exercised its option rights regarding the four vessels, I am very pleased to have forged this close partnership with a strong strategic investor in the product tanker space," said CEO Jacob Meldgaard.
"Through our strong operational platform, we have succeeded in maintaining the four vessels associated with TORM.
"We have also secured that two additional vessels will join our revenue sharing scheme."
The deal will result in an impairment of $55 million that TORM will record in the fourth quarter of 2013.
It will improve the company's liquidity position by $13 million and fully replay associated vessel financing, reducing the company's debt by $107 million.
Oaktree previously took ownership of five other TORM vessels in April, also under the restructuring agreement.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 565.50 | 6.00 | 661.50 | 4.00 |
| Rotterdam | 510.00 | 2.00 | 661.00 | 2.00 |
| Houston | 548.00 | 2.50 | 666.50 | 0.50 |
| Fujairah | 555.50 | 5.00 | 746.00 | 2.50 |
| Global 20 Ports Average | 582.50 | 1.50 | 753.00 | 1.50 |
| Global 4 Ports Average | 544.50 | 3.00 | 683.50 | 1.00 |
| Global Average Bunker Price | 631.00 | 2.50 | 803.50 | 2.00 |
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