Rickmers Maritime adjourns noteholders' meeting on proposed restructuring of bonds

SINGAPORE - Container ship operator Rickmers Maritime has adjourned its noteholders' meeting on Wednesday as it lacked the quorum for noteholders to vote on the proposed restructuring of its $100 million 8.45 per cent notes due 2017.

The adjourned meeting is now set to take place between Nov 23 an d Dec 21.

There were eight individuals present at the meeting, representing only about 65 per cent of the total bond holding, less than the 75 per cent threshold needed to establish a quorum, said trustee-manager Rickmers Trust Management.

It also said it will hold dialogue meetings with noteholders in the coming weeks to help them better evaluate the proposed restructuring.

The restructuring includes a partial redemption of $60 million of the principal sum in exchange for 60 per cent of the enlarged units of the trust - for which the trust plans to issue 1.32 billion new units, representing 150 per cent of its current units. The outstanding $40 million notes will be repayable in Nov 2023.

"Noteholders may need more time to evaluate the restructuring proposal. In the meantime, we will continue to engage noteholders, through small group meetings, with the objective of addressing noteholders' concerns more effectively," said Mr Soeren Andersen, chief executive of the trustee-manager.

"There are critical consequences if we are unable to come to a decision soon, as the cash levels in two of our silos are almost depleted, threatening Rickmers Maritime's ability to continue operating as a going concern."

Rickmers Trust Management said last month it has received a further letter from legal firm Rajah & Tann Singapore, on behalf of a group of bond holders, demanding the immediate payment of their share of the $100 million notes.

In the event the proposed restructuring is not approved by noteholders, Rickmers Maritime could wind up. Unitholders had passed the resolution approving the winding-up of the trust last month.