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Rickmers Maritime to wind up after failing to reach an agreement with banks on debt restructuring
- Unable to repay about US$197m to HSH Nordbank and DBS.
Bond holders get back some residue money shareholders get none sure they voted mah...
dyingcat ( Date: 13-Apr-2017 07:20) Posted:
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When unitholders voted to liquidate the trust at EGM last October, were they told they would end up getting nothing back? Can any SIAS member here complain to SIAS?
Damn bondholders made us lose everything. How much can they recover?Can SIAS help us?
http://www.straitstimes.com/business/companies-markets/shipping-trust-rickmers-maritime-bites-bullet-with-winding-up
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.
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.
Rickmers Maritime becomes latest Singapore casualty of debt woes
http://www.reuters.com/article/us-rickmers-maritime-debt-idUSKBN17E0CI
The above article mentioned the following:
- secured debts of $270.8mio and unsecured bonds of $100mio
- Trust may distribute some cash upfront to unsecured creditors to creditors after liquidation
Hinting that excess cash after paying secured debts, might be less than $100mio which means nothing left for unitholders.
enjoylife77 ( Date: 12-Apr-2017 16:36) Posted:
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Shareholder wipe out?
Will our regulators intervene if a Rickmers-related entity emerged as the buyers of the Panamax container ships at a tiny fraction of valuation?
MarcPh ( Date: 12-Apr-2017 12:12) Posted:
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Will our regulators intervene is a Rickmers-related entity emerged as the buyers of the Panamax container ships at a tiny fraction of valuation?
GuavaXF30 ( Date: 12-Apr-2017 12:53) Posted:
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Net effect, both Unitholders and Bondholders got barbequed. Nobody is going to walk away happy. Except maybe the management which had collected their fat fees before.
MarcPh ( Date: 12-Apr-2017 12:22) Posted:
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Unitholders and management was unfair the bondholders.
In bid to shore up their balance sheet to secure a US$200+mio facility to refinance their bank debts, the Trust wanted the bondholders to take > 70% haircut, by offering to exchange their $100mio plain-vanilla bonds in exchange for $28mio perpetual bonds (no maturity). Creditor banks did not offer to the same level of debt write-down or restructuring and unitholders did not recapitalize the company.
Bondholders were treated roughly and forced to bear the brunt to salvage the Trust.
GuavaXF30 ( Date: 12-Apr-2017 12:05) Posted:
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I refer to the following article: https://theloadstar.co.uk/panamax-vessel-crisis-deepens-rickmers-maritime-trust-suspends-share-trading
Container vessels have hitherto depreciated in value over a period of 25 years &ndash so a ship scrapped before its 10th birthday could mean a massive 60% accounting write-off.
Several non-operating owners have been obliged to take substantial impairment losses on their panamax ships, but for Singapore-listed Rickmers Maritime Trust (RMT), which only has panamax vessels in its 16-ship fleet, the dire employment prospects for the sector have been especially rough.
RMT has five ships on time charter to MOL until 2018/19, six are seeking spot employment and the remaining five are in cold lay-up in Malaysia.
NextEvolution ( Date: 12-Apr-2017 12:00) Posted:
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It' s a gonna for unit holders. The sale value is likely to be low given the heavy surplus of shipping assets out there.
NextEvolution ( Date: 12-Apr-2017 12:00) Posted:
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In a distressed sale, don't think so they can get anything close to valuation price. More likely if anything, to be around $350m to $400m range
MarcPh ( Date: 12-Apr-2017 11:51) Posted:
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" The Trustee-Manager is in advanced discussions with a potential buyer for the Trust& rsquo s assets which may allow the Trust to distribute cash recoveries upfront to unsecured creditors."
Valuation of vessels on last financial statement - Appx $500mio
Total debts about $350mio + penalty interests, including $100mio bonds due to mature a month later.
From : http://infopub.sgx.com/FileOpen/RM%20Announcement%20-%20Wind-up.ashx?App=Announcement& FileID=447837
Rickmers Trust Management Pte. Ltd., in its capacity as trustee-manager (the &ldquo Trustee-Manager&rdquo ) of Rickmers Maritime (the &ldquo Trust&rdquo ) refers to its announcement dated 21 March 2017 in relation to its discussions with the HSH Syndicate, comprising HSH Nordbank AG (&ldquo HSH&rdquo ) and DBS Bank Ltd (&ldquo DBS&rdquo ), in relation to the existing loans extended by the HSH Syndicate to the Trust. Following the unsuccessful attempt in December 2016 to obtain noteholders&rsquo approval to restructure the S$100 million 8.45% medium-term notes (the &ldquo Notes&rdquo ) issued by the Trust, which was a condition for the restructuring of the Trust&rsquo s secured bank loans via a US$260 million new facility agreed to by its senior lenders, the Trustee-Manager has been unable to reach an alternative agreement with its lenders to restructure the Trust&rsquo s debts.
This has led to events of default as a result of, amongst others, the failure to make the US$196.7 million principal repayment to the HSH Syndicate due on 31 March 2017 and the S$4.3 million coupon payment to noteholders in November 2016, as well as various breaches in loan covenants, which have cast material uncertainties on the Trust&rsquo s ability to continue as a going concern. This situation places the Trust in a situation of aggravated and unsustainable illiquidity going forward. HSH had granted the Trustee-Manager until 15 April 2017 to present a new restructuring proposal which would ensure a higher level of total recoveries than under a winding up of the Trust. In connection with formulating such new proposal, the Trustee-Manager had entered into discussions with potential industry, private and distressed investors to raise new equity, on the basis that, subject to further approvals and conditions, HSH would be willing to grant material debt forgiveness of the existing loans that it has extended to the Trust if the Trust was able to secure similar substantial debt forgiveness from the noteholders and its other unsecured creditors. The Trustee-Manager is disappointed to have to announce that, after much effort placed on achieving a consensual restructuring among creditors, potential investors have not supported an injection of new equity into the Trust due to the challenges in obtaining, through a consensual process between parties, noteholders&rsquo and other creditors&rsquo consent for significant debt write-offs.
The Trustee-Manager has previously obtained unitholders&rsquo approval at its extraordinary general meeting held on 31 October 2016 to wind up the Trust in accordance with the Business Trusts Act, Chapter 31A of Singapore (&ldquo BTA&rdquo ), and the trust deed constituting the Trust (&ldquo Trust Deed&rdquo ), in the event of an unsuccessful restructuring of the Trust and where it is impracticable or inadvisable to continue the Trust in the opinion of the Trustee-Manager.
In light of the aggravated illiquidity and lack of new investors, the Trustee-Manager opines that it is impracticable to continue the Trust and that it shall therefore be wound up. The winding up decision is made in light of no other possible alternatives to restructure the liabilities of the Trust with the objective of delivering value on an accelerated basis to all creditors to avoid uncertainties and risks involved in a protracted winding up process. The Trustee-Manager is in advanced discussions with a potential buyer for the Trust&rsquo s assets which may allow the Trust to distribute cash recoveries upfront to unsecured creditors. While the parties are in advanced discussions, no deal has been finalized at this stage.