Rickmers faces uphill task in new note revamp plan

Singapore

FOLLOWING recent feedback from note-holders, Rickmers Maritime's trustee-manager has tabled a revised note restructuring plan that comes with a more substantial debt-to-equity swap. But, given the substantial equity dilution, its task of seeing this plan through may be an uphill one.

Under the revised plan - with the twin aim of deleveraging its balance sheet and enhancing its chances of surviving the protracted container shipping downturn - Rickmers has proposed to partially redeem the S$100 million 8.45 per cent note due 2017, bringing it down to S$40 million, with revised terms and repayable in November 2023.