Injunction against Rickmers' proposed fleet sale withdrawn

THE trustee-manager of Rickmers Maritime said on Wednesday an application for injunction filed against its US$113 million proposed fleet sale has been withdrawn.

The plaintiff had on May 17 withdrawn its application and discontinued his court case against the trust with leave from the High Court with no order as to costs, the trustee-manager said in a regulatory disclosure.

It urged all creditors to abstain from actions that may jeopardise or delay the orderly wind-up of the trust, which could adversely impact the value and timing of any recoveries.

It also pledged to continue to maintain communication through its public relations email at ir@rickmers-maritime.com.

Appropriate announcements will be made on SGXnet or via the creditors' respective agents and notes trustee, it added.

Noteholders told The Business Times the decision to discontinue the injunction was made after taking into account an announcement pertaining to an escrow account from the trustee-manager after the injunction application was filed and served.

In the announcement over the weekend, the trustee-manager said a US$20 million escrow account will be set aside to pay unsecured creditors and these stakeholders will get between 8 per cent and 10 per cent in upfront cash recoveries.

Noteholders also said they reserve the right to pursue legal action in the future against the trustee-manager.