TORM Secures Loan Extension

Danish-based shipping company TORM has reached an agreement in principle to extend its working capital facility and support its ongoing recapitalization efforts, as announced by TORM CEO Jacob Meldgaard.

The agreement in principle was reached with the Coordinating Committee of Lenders regarding an extension of the existing Super Senior Working Capital Facility by six months until 31 March 2015 to facilitate the completion of the recapitalization process.

Given the current limited draw, TORM has requested that the facility be reduced from USD 100m to USD 50m.

The extension is subject to continued progress in the recapitalization process.

Final implementation of the extension is expected before 30 September 2014.

Meldgaard said:  “In the second quarter of 2014, Torm has continued to deliver competitive results and positive cash flow from operations after full interest payment even though the product tanker market was weaker than expected.”

In the second quarter of 2014, TORM realized a positive EBITDA of USD 14m and a loss before tax of USD 24m.

EBITDA for the second quarter of 2014 was a gain of USD 14m (Q2 2013: USD 25m). The result before tax for the second quarter of 2014 was a loss of USD 24m (USD – 30m).

Cash flow from operating activities after full interest payment was positive by USD 15m in the second quarter of 2014 (USD 28m).

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Press Release, August 15, 2014