Alphaliner: RMT Reaches List of Owners with Toxic Ships

Image Courtesy: Rickmers Maritime

Singapore-listed containership owner and operator Rickmers Maritime Trust (RMT) has become the latest casualty in a growing list of boxship owners with toxic vessel assets that are unable to generate sufficient funds to pay their outstanding debt obligations, according to Alphaliner.

While numerous privately-owned shipowners and KG vessel funds have already filed for bankruptcy in the last three years due to the collapse in containership charter rates and asset values, RMT is the first publicly listed owner to admit that it is technically insolvent and that its assets are currently only worth their scrap values.

According to RMT, its fleet of 16 panamax containerships of 3,400-5,000 TEU, with an average age of only nine years, would be worth a maximum of only USD 140 million in a distressed sale, against a book value of USD 640 million.

Secured lenders will likely only recover 50 – 65% of the debt owed, while bondholders and shareholders will suffer a total loss on their investments if the assets are liquidated.

In an attempt to buy time, RMT has proposed that its bondholders exchange USD 100 million of notes due in May 2017 to USD 28 million perpetual notes with no maturity date that are convertible to 20% of the shares of the company.

If the bondholders do not accept the proposal, the Singapore-listed company said it will not be able to obtain the secured lenders’ agreement to refinance the rest of its outstanding senior debt of USD 281 million, of which USD 180 million is due in March next year.

Alphaliner said that the proposal will likely be resisted by the bondholders as it favours the equity owners, who will still retain 80% of the company shares, while buying additional time in the hope that the panamax containership market will enjoy an improbable recovery.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Apr 2017 >>
MTWTFSS
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

THE 30TH WORLD PORTS CONFERENCE Enabling Trade Energizing The World

This event is expected to have more than 500 attendees from the field of port, logistics, shipping and maritime industry…

read more >

Singapore Maritime Week 2017

Singapore Maritime Week (SMW) is the leading maritime event in Singapore. Driven by the Maritime and Port Authority of Singapore (MPA), SMW…

read more >

Breakbulk Europe 2017

For more than a decade, Breakbulk Europe has served as the networking hub for industry professionals who do business in Europe — or would like to! Exhibitors and sponsors include cargo owners, ocean carriers, freight forwarders, ports/terminals, heavy haulers, equipment companies and more that are involved in this specialized industry.

In addition to exceptional networking opportunities, Breakbulk Europe provides a dynamic conference, along with a range of educational and training workshops — intensive all-day classes held the day before the exhibition opens as well as many on-the-floor sessions.

  • Over 7,600 participants attended Breakbulk Europe 2016
  • Meet with over 400 exhibitors and sponsors
  • Hear from industry experts, including leading shippers, during the conference sessions
  • Learn new skills in the educational workshops held before the exhibition and on-the-floor micro-seminars and exhibitor-led sessions during the event

More info

read more >

Smart Operations

Smart Operations events, from Fathom Maritime Intelligence, examines how to use intelligent shared integration, and connected operations…

read more >