The High Court in England has approved the restructuring programme of DS Torm, the listed Danish product tanker operator has announced.
In a statement, Torm said it had obtained the creditor consents it needed for restructuring with “an English law Scheme of Arrangement” sanctioned by the High Court of England and Wales and lodged with Companies House. “The scheme has thus become effective,” it said.
The company is expecting to make a gross profit of USD166 million this year, which could rise to USD274 million in 2016 and to USD304 million in the following year, according to a company financial performance forecast.
Related news: DS Torm expects to complete restructuring about mid-July
The restructuring makes Oaktree Capital, the US private equity group, the biggest shareholder in the company, founded in 1889. Existing shareholders are left with about 2% of the equity; shipping analysts have commented that it with remarkable that the programme left them with anything at all.
This is the second time Torm has restructured its business since the 2008 financial crisis. Under the first programme, debt was also converted to equity and existing shareholders were left with 10% of the shares.