[170417.EN.SEA] Singapore's Rickmers Maritime Declares Insolvency, Police Probe Sought

SINGAPORE's Rickmers Maritime managers say the company faces bankruptcy after declaring itself insolvent being unable to satisfy lenders with a restructuring plan due April 15.

One bond holder is seeking a police inquiry, alleging that management was still drawing salaries despite bond holders' earlier directive to wind up.

"If the company freezes assets and starts liquidating, note holders can get back more, because the company is operating at loss, which means the longer it drags, the less is left," said the bond holder.

The shipping trust's managers said they have begun to wind up the affairs of the shipowner, after debt restructuring talks failed last December, reported Singapore's Straits Times.

"Potential investors have not supported an injection of new equity into the trust due to the challenges in obtaining... noteholders' and other creditors' consent for significant debt write-offs," Rickmers Maritime Trust said in a statement to the Singapore Exchange.

"In light of the aggravated illiquidity and lack of new investors, Rickmers Maritime Trust opines that it is impracticable to continue the Trust and that it shall therefore be wound up."

Last December, Rickmers bond holders rejected the management's appeal to swap the principal on S$100 million (US$ 71.4 million) of notes of 8.45 per cent, which would have been due this May, for S$40 million due in November 2023 pegged to much lower coupon rates.

Deeply indebted Rickmers needed to get bond holders on board before bank lenders would allow it to draw on a US$260.2 million facility for refinancing.

Its main lender, HSH Nordbank AG, had granted Rickmers until April 15 to present a new restructuring proposal which would ensure a higher level of total recoveries than under a winding up of the Trust.

Rickmers had approached potential industry, private and distressed investors to raise new equity, but no one would inject fresh equity into the trust.

Rickmers added that it is now in "advanced discussions" with a potential buyer for its assets, said the Straits Times.

Rickmers Trust Management said it will advise unsecured creditors on the amount of recoveries via their respective agents and trustees in due course.

"Regrettably, unitholders are highly unlikely to recover any of their investments," it added.

Trading in Rickmers Maritime units had been suspended since last November.

Source : HKSG.