To a ‘restructuring and support agreement’ with the co- ordinating committee of lenders (representing both banks and other lenders).
TORM entered into an agreement with a group of its current lenders, representing 61% of the company’s ship financing and Oaktree Capital Management regarding a possible restructuring.
However, this agreement has yet to receive unanimous support from the co-ordinating committee, and some of the lenders have taken reservation of rights regarding a po tential default under other provisions.
Therefore, TORM said that it is currently in non-compliance with the milestone requirements under its loan facilities.
With the commitment from the group of lenders representing 61% of TORM’s ship financing, such milestone default is not expected to be enforced while negotiations are on going, the company said.
The proposed transaction with Oaktree Capital Management is due to be finalised no later than the first quarter of next year.
TORM said that it considered this problem was down to a consequence of the development in the restructuring process and did not expect any immediate financial consequences to materialise.