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Unable to pay bond interest, Rickmers seeks trading halt, flags going-concern risk

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The trustee-manager of Rickmers Maritime said on Tuesday it is unable to pay a S$4.26 million interest for its bonds due on Nov 15.

THE trustee-manager of Rickmers Maritime said on Tuesday it is unable to pay a S$4.26 million interest for its bonds due on Nov 15.

And if it fails to do so within five business days from Tuesday, this would constitute an "event of default", which would trigger cross-default and/or cross-acceleration clauses in other loan agreements.

As a result, Rickmers Trust Management said it is requesting for an immediate trading suspension of the units of the trust.

"In view of the uncertain outcome of the discussions with senior lenders and the adjourned noteholders' meeting, the trust is unable to demonstrate that it is able to continue as a going concern," it said in a Singapore Exchange filing on Tuesday. "The trustee-manager will therefore be requesting for an immediate trading suspension of the units of the trust and of the notes until the going concern issue has been resolved."

sentifi.com

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Rickmers Trust Management obtained approval from unitholders to wind up the trust at an extraordinary general meeting on Oct 31.

The noteholders' meeting on Nov 9 had been postponed as an insufficient number of bondholders turned up; it will be reconvened between Nov 23 and Dec 21.

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