Rickmers Maritime Doubts It Can Continue
Rickmers Maritime, a Singapore-listed trust that operates container ships, said it faces the risk of going out of business given the uncertain outcome of its discussions with bondholders and senior lenders about restructuring its debt.
The firm said it would not be able to pay an interest of S$4.26 million, which is due on November 15, on a S$100 million ($71 million) bond that it has been trying to restructure.
"In view of the uncertain outcome of the discussions with senior lenders and the adjourned noteholders' meeting, the trust is unable to demonstrate that it is able to continue as a going concern," Rickmers said in a statement.
Rickmers is also currently in discussions with its lenders to obtain waivers on its obligations under existing senior loan facilities. It has requested for an immediate trading suspension of the trust's units and of the notes until the going concern issue has been resolved.
Rickmers announcement comes on the heels of a decision by Swissco Holdings, a debt-laden provider of rig and vessel chartering services, to seek interim judicial management after reaching an impasse with major lenders.
Last month, Rickmers took unitholders' approval to wind up the trust in the event of an unsuccessful restructuring and where it is impracticable or inadvisable to continue the trust.
The company says on its website that it has a portfolio of 16 modern, high-quality container ships ranging in size from 3,450 TEU to 5,060 TEU, offering a total capacity of 66,410 TEU. The vessels are chartered to leading container liner companies including CMA CGM, Maersk Line, Mitsui O.S.K. Lines and Mediterranean Shipping Company.