HSH Nordbank sets Rickmers Maritime deadline

German bank wants to be convinced by 15 April that Singapore boxship owner is worth more as a going concern than in liquidation.

German bank HSH Nordbank has given struggling Singapore owner Rickmers Maritime until 15 April to come up with a new restructuring plan.

It wants to see a proposal that will give it a higher level of total recovery than if the trust were to be wound up.

The Singapore containership owner said the bank has not yet accepted any specific proposal for debt forgiveness.

Last week, it said HSH could hand it a lifeline by writing off debts.

Rickmers Maritime had held talks with its largest lender after no plan for a restructuring could be agreed with its bondholders.

The bank indicated it "may be" willing to consider a debt forgiveness of the existing loans if the company is able to secure similar, "substantial" debt forgiveness from the noteholders and its other unsecured creditors.

The containership owner must also raise additional equity, boosting it above liquidation value.

Otherwise, the bank supports winding up the company.

RMT is in discussions with its advisers to formulate a new framework for restructuring.

Last month it issued a plea to creditors to write off debts in order for the company to survive.

It said it continued to face difficulties in meeting principal repayments, including $197.7m owed to an HSH syndicate on 31 March, as well as its SGD 100m ($70.51m) 8.45% medium-term notes due on 15 May 2017.

The company posted a net loss of $48.4m in the fourth quarter, against $129.58m in 2015.

Charter revenue fell to $14.28m against $24.08m the year before.

TRENDING TODAY