HSH Nordbank Rejects Rickmers’ Debt Restructuring Plan

German HSH Nordbank has dismissed the debt restructuring proposal of Singapore-based containership owner and operator Rickmers Maritime, the shipping firm’s trustee-manager Rickmers Trust Management (RTM) said in an update. 

The proposal is related to the restructuring of SGD 100 million (around USD 71 million) notes due in May 2017.

As a result, HSH Nordbank, Rickmers Maritime’s largest senior lender, advised RTM to formulate a revised restructuring proposal.

RTM also said that there were no further discussions between the senior lender and its financial adviser, Ferrier Hodgson, adding that it expects that the restructuring of the notes “is likely to be further delayed.”

However, the bank indicated that it may consider a material debt forgiveness of the existing loans if RTM is able to secure similar, substantial debt forgiveness from the noteholders and its other unsecured creditors and raise additional equity.

RTM said it is currently in discussions with its advisers to formulate a new framework for restructuring the liabilities of the trust and intends to present the new restructuring proposal to its creditors and noteholders once it is finalized.

“Given that the trust is formulating a new proposal for the restructuring of its liabilities, the trustee-manager is of the view that there is still basis for the trust to continue and the trust should not be wound up in accordance with its trust deed at this time,” RTM noted.

In February, RTM said that Rickmers Maritime might be forced to wind up its business if the efforts to refinance its bank loans are unsuccessful.

The trust posted a net loss of USD 180.1 million in FY2016, sinking further from a net loss of USD 129.2 million recorded a year earlier, mainly due to the lower charter revenue and vessel impairments worth USD 168.7 million.