Singapore’s Rickmers receives acceleration letter, raises questions

New York, Sept. 28 – Rickmers Trust Management Pte. Ltd., trustee-manager for Rickmers Maritime, said it received a letter claiming that a notice of acceleration has been served for the company’s S$100 million of 8.45% notes due 2017.

But the trustee-manager said that it has not received any notice of that kind.

The letter was sent by Rajah & Tann Singapore LLP, solicitors acting for some holders of the notes, according to a notice from Rickmers Trust Management.

Holders of more than 25% of the notes have “served a notice of acceleration on DB International Trust (Singapore) Ltd.,” the trustee for the notes, the letter states, according to the notice.

Rickmers Trust Management said that under the terms of the notes the trustee for the notes may, at its discretion and if requested by holders of at least 25% of the notes, give notice to the trustee-manager that the notes are immediately due and payable.

No notice has so far been received from the trustee for the notes, Rickmers Trust Management said.

Rickmers Trust Management also pointed out that the letter does not say which events of default are being relied upon nor does it give evidence that the 25% threshold has been met.

On Sept. 21, Rickmers announced a revised restructuring plan for the notes.

As a result, Rickmers said it plans to seek the approval of noteholders via a consent solicitation to redeem S$60 million of the notes in exchange for 60% of the enlarged units of the company, extend the maturity of the remaining S$40 million of notes to November 2023 and reduce the coupon to 2.7%, which would step up to 3.3% in November 2019, 3.9% in November 2020, 4.5% in November 2021 and 5.2% in November 2022.

Rickmers also warned that it is unlikely to be able to pay interest on the notes or repay them at maturity.

Based in Singapore, Rickmers Maritime is a container ship operator and charterer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.