Rickmers Maritime Faces Winding Up After Failure to Reach Restructuring Agreement

RMT says it is in advanced discussions with a potential buyer for the trust's assets. Image: Rickmers

Rickmers Trust Management Pte. Ltd. (RMT), the trustee-manager of Rickmers Maritime (Rickmers), today announced that, in light of the aggravated illiquidity and lack of new investors, Rickmers is set to be wound up and delisted.

"The Trustee-Manager is disappointed to have to announce that, after much effort placed on achieving a consensual restructuring among creditors, potential investors have not supported an injection of new equity into the Trust due to the challenges in obtaining, through a consensual process between parties, noteholders' and other creditors' consent for significant debt write-offs," stated RMT.

"The winding up decision is made in light of no other possible alternatives to restructure the liabilities of the Trust with the objective of delivering value on an accelerated basis to all creditors to avoid uncertainties and risks involved in a protracted winding up process."

The business operations of Rickmers' vessels and ongoing charter party obligations to customers are said to be expected to remain unaffected by the winding up process.

RMT says an application will be submitted to Singapore Exchange Securities Trading Limited (SGX-ST) for the delisting of the trust and notes from the SGX-ST's Official List.

RMT also says it is in advanced discussions with a potential buyer for the trust's assets, which could enable the trust to distribute cash recoveries upfront to unsecured creditors.

"While the parties are in advanced discussions, no deal has been finalised at this stage," notes RMT.

In January, RMT announced that it has entered into a memorandum of agreement for the sale of the vessel Kaethe C. Rickmers in order to secure senior loan facilities extended by HSH Nordbank AG, Singapore Branch and DBS Bank Ltd (HSH Syndicate) for Rickmers.