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Rickmers Maritime to wind up after failing to reach deal with lenders
[SINGAPORE] Rickmers Maritime, a Singapore-listed trust that operates container ships, said it would be wound up after it was unable to reach an agreement with its lenders to restructure its debt or raise new equity.
Rickmers said its failure to repay some debt obligations and various breaches in loan covenants cast material uncertainties on its ability to continue as a going concern.
"This situation places the trust in a situation of aggravated and unsustainable illiquidity going forward," it said in a statement on Wednesday.
The trust had flagged the going concern risk last year.
Rickmers joins other Singapore-listed companies that have struggled with debt over the last year. In March, oilfield services firm Ezra Holdings Ltd filed for US Chapter 11 bankruptcy.
Singapore banks, which were caught off-guard by the collapse of oilfield services company Swiber Holdings last year, have taken a hit as companies in the offshore and marine sector restructure debt.
"In light of the aggravated illiquidity and lack of new investors, the trustee-manager opines that it is impracticable to continue the trust and that it shall therefore be wound up," Rickmers said.