World News
Torm in Talks with Two Potential Investor Groups
Danish tanker and bulk vessel operator A/S Dampskibsselskabet TORM (Torm) is in the final stages of negotiations with two international groups of investors.
As part of a capital raising process, they have submitted conditional proposals to inject $100 to $200 million in equity and cash initiatives.
The terms of the investment are currently being negotiated and involve decreasing TORM's existing share capital, while also granting existing shareholders an opportunity to subscribe for new shares.
The deal may include making new shareholders out of stakeholders such as banks and time charter partners.
The final ownership structure is subject to the terms negotiated.
TORM has indicated that they have been cooperating and working closely with its banks, time charter partners, shareholders and other stakeholders to establish a basis for TORM to continue.
The capital raising process is the first of five elements identified in TORM's 2011 Annual Report as part of a comprehensive, long-term solution for the beleaguered company.
The second element acknowledges that TORM's standstill agreement with all its banks expired on 15 March 2012 however the investment proposals are structured so that TORM will be granted a standstill period by the banks on the expectation that they are to receive full and satisfactory settlement of their outstanding loans.
Thirdly, significant cost reductions have been executed by TORM with further cash and cost improving initiatives to be implemented over the next three years.
Fourthly, no new vessels are to be financed as TORM's newbuilding program has been discontinued.
Finally, TORM has obtained statements from the owners of the chartered-in tonnage as part of its long-term cooperation with these owners, to be finally negotiated and agreed.
TORM is currently working with the potential investors to finalize the contractual basis as soon as possible so that it can be presented to the company shareholders.
TORM's annual general meeting (AGM) is planned to be held on 23 April 2012.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 7.00 | 617.00 | 6.00 |
| Rotterdam | 455.00 | 8.00 | 619.50 | 4.00 |
| Houston | 467.00 | 4.50 | 625.00 | 2.50 |
| Fujairah | 495.00 | 6.00 | 712.50 | 1.50 |
| Global 20 Ports Average | 524.50 | 4.50 | 710.50 | 4.00 |
| Global 4 Ports Average | 479.50 | 6.50 | 643.50 | 3.50 |
| Global Average Bunker Price | 570.50 | 2.00 | 747.50 | 5.50 |
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