Singapore-listed containership owner Rickmers Maritime will not be able to pay USD 179.7 million of senior debt which is due in March 2017, the company said in an investor presentation filed to the Singapore Exchange.
Furthermore, due to adverse market conditions which affected the company’s financial performance, Rickmers Maritime said it will not be able to meet on-going coupon and principal payments of the SGD 100 million (USD 73.1 million) 8.45% notes due in May 2017.
The company is asking investors to exchange their debt with SGD 28 million of new perpetual bonds to avoid liquidation and total loss on the notes. This would also allow continued coupon payments under the new securities, Rickmers Maritime said.
Tomas Norton de Matos, Chief Financial Officer of Rickmers Trust Management (RTM), earlier said that the restructuring process was “fairly complex and made more difficult by current market conditions.”
“Nevertheless, we remain focused on securing a unified single credit facility that is sustainable and that gives the trust greater flexibility and a longer runway to manage its liabilities and growth. This will enable us to address the USD 100 million three-year notes, maturing on May 15, 2017,” he added.
Rickmers Maritime recorded a net loss of USD 55.6 million in the second quarter of this year, compared to a loss of USD 15.7 million in the same period last year, a change of 255%.
The company’s charter revenue during the period fell to USD 18 million from USD 28.5 million seen in the second quarter of 2015, mostly due to reduced charter rates and a lower vessel utilization rate amid a worsened charter market.