Torm wins more time

Danish tanker owner Torm has bought more time to come up with a new capital structure in a deal with its banks.
Jacob Meldgaard, chief executive of Torm.

Jacob Meldgaard, chief executive of Torm.

The loss-making company confirmed lenders had agreed to extend its working capital fund by six months to 31 March next year.

Torm has asked that it be reduced from $100m to $50m at the same time.

CEO Jacob Meldgaard said: “The 100% consent level representing more than 40 lenders is a strong sign of the support to Torm and the efforts to recapitalise the company.

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

Torm saw its lenders take a significant holding in the company in February 2012 after a long effort to restructure debt bore fruit.

It has been looking to establish a new capital structure for some time.

The owner reported a second quarter loss of $22.8m, down from the $30.2m loss of a year ago in a weaker than expected products tanker market.

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