Oaktree Takes Majority Stake in TORM

Danish shipping company TORM has signed today the new Restructuring Agreement with Oaktree Capital Management and a majority of the lenders holding in aggregate 92% of TORM’s existing loan facilities by value.

Under the new deal, Oaktree will contribute 25 trading ships and six newbuildings to TORM in exchange for a controlling share in the company.

“TORM is confident that the company will achieve the support of substantially all of its lenders under the existing loan facilities for the implementation of the restructuring.  However, in the case that less than 100% support is achieved, TORM will implement the restructuring through an English law scheme of arrangement,” the company said in a statement.

TORM has already obtained the required minimum lender consent of 75% by value and a majority in number of the relevant classes of TORM’s lenders.

According to TORM, the final implementation of the restructuring is subject to certain conditions precedent, including required approvals from public authorities.

The company has just repaid its Super Senior Working Capital Facility. As at 26 March 2015, TORM’s cash position was USD 51 million.