Denmark: TORM Inks Restructuring Agreement with Its Banks and Time Charter Partners

Today TORM announces that the company has signed Restructuring Agreement with its Banks and time charter partners.

“The restructuring agreement secures TORM substantial deferral of bank debt, new liquidity and savings from the restructured time charter book. This will enable TORM to become cash flow positive even at the current rate levels. The Company now has time to further secure the future, long-term capital structure. It has taken extraordinarily long time to reach this agreement and inflicted very high costs on the Company, but TORM will now be able to continue its business even in a continued difficult market,” says Chairman of the Board N. E. Nielsen.

“I am extremely satisfied that an out-of-court agreement has been signed. It has been a long process, but I am very pleased that our long-standing time charter partners and the banks have been supportive. TORM’s organization now looks forward to devoting all of its focus solely on the customers and operations again,” says CEO Jacob Meldgaard.

[mappress]

TORM, October 2, 2012