World News
Banks Propose Torm Restructuring Plan
Refined oil products and dry bulk carrier, Torm, has announced its Board of Directors is considering a plan to restructure the company's ownership and debt, Shippingwatch reports.
The company that last year spent $410 million on bunkers, port expenses, and commissions, according to its 2013 Financial Report, has been struggling in recent years to turn a profit.
According to Shippingwatch, the 5 banks proposing the plan hold a combined 60 percent of Torm's debt and include Nordic players Danske Bank, HSH Nordbank, and SEB as well as HSBC and Singaporean DBS.
It is said that the banks hold the balance of power in terms of deciding Torm's future debt and ownership structure, and that a deal could bring stability to the company's future.
In a statement, Torm said it had "initiated discussions with the relevant stakeholders to evaluate the proposed deal and its potential implementation" but set no timetable for a deal to be reached.
In May Torm said it lost $222 million before taxes in the first quarter of 2014.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.50 | 1.00 | 770.00 | 3.50 |
| Rotterdam | 601.50 | 2.50 | 754.00 | 2.00 |
| Houston | 619.00 | 11.50 | 795.50 | 3.00 |
| Fujairah | 651.50 | 1.00 | 895.00 | 2.00 |
| Global 20 Ports Average | 664.00 | 1.50 | 856.50 | 2.00 |
| Global 4 Ports Average | 630.00 | 3.00 | 803.50 | 2.50 |
| Global Average Bunker Price | 718.00 | 0.50 | 914.50 | 0.50 |
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