DS Torm, the listed Danish product tanker and dry bulk shipping company, says it expects to complete restructuring of its business around mid-July following lender approval of a legal part of it, the company said in a statement.
“As part of the implementation of the new Restructuring Agreement, Torm has initiated an English law Scheme of Arrangement. Torm is pleased to announce that the Scheme that it is proposing under each of its four loan facilities has been approved by its lenders at the Scheme meetings which were held earlier today,” the company said in a statement on Thursday.
“Torm will now apply for the Scheme to be sanctioned by the High Court of England and Wales on 30 June 2015. Provided the Scheme is sanctioned, Torm will then deliver the sanction order to Companies House on or around Wednesday, 1 July 2015 – the Lodgement Date. Upon the occurrence of the Lodgement Date, the Scheme will become effective,” the company stated.
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“Torm will then be able to implement the final steps to complete the Restructuring with an expected Restructuring Completion Date around mid-July 2015,” Torm concluded.
This is the second time the company has undergone restructuring since the outbreak of the financial crisis seven years ago. In the new programme, existing shareholders will be left with about 2% of the equity in the company, Oaktree Capital Management, the US private equity investor, will be Torm’s largest shareholder.
The tanker division, which operates about 90 ships from 35,000 dwt to 110,000 dwt, is the group’s main business. In addition, it operates a number of dry bulk carriers, but this business will be closed down as part of the restructuring programme.