TORM says ship lenders propose deal for restructuring loans

By Susanna Moon

Chicago, Sept. 29 – TORM said it received a proposal from a group of its lenders, representing more than half of TORM’s ship financing, and Oaktree Capital Management.

TORM’s board of directors began “discussions with the relevant stakeholders to evaluate the proposed deal and its potential implementation,” according to a company press release.

The company said that it is impossible at this time “to predict the outcome of the evaluation or the time horizon for a potential deal.”

The company said on Aug. 29 that its lenders agreed to extend its super senior working capital facility by six months until March 31, 2015 to facilitate the recapitalization process.

Given the current limited draw, the extended facility will be reduced to $50 million from $100 million on TORM’s request, the company previously said.

The extension remained subject to progress in the recapitalization, the company said.

The company secured approval from more than 40 lenders, Jacob Meldgaard, chief executive officer, said in a previous press release.

“The aim is to reach a long-term solution for the capital structure within the timeframe of this extension.”

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

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