TORM expects to renew installment deferral and covenant standstill

By Susanna Moon

Chicago, June 1 - TORM A/S expects to renew a temporary deferral of installments and covenant standstill, which had been set to end May 31, according to a company press release.

The company said on May 11 that the temporary agreement was subject to the continued progress of the negotiations toward a previously announced financing framework agreement in principle.

"We have agreed to a new extension of the standstill with our bank group, and the final documentation of the long-term financing plan has commenced," chief financial officer Roland M. Andersen said in the May 11 news release.

The company announced its financing framework agreement in principle on April 4. It is expected to include a working capital facility and substantial amortization and covenant relief under the company's existing credit facilities.

TORM is a Copenhagen-based carrier of refined oil products and is involved in the dry bulk market.

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