Rickmers Maritime Trust says it has received lawyer's letter from noteholders

THE trustee-manager of Rickmers Maritime Trust on Thursday said that it had on Wednesday received a further letter from Rajah & Tann Singapore, which is acting on behalf of a noteholder group that is demanding immediate payment of their share of the S$100 million medium-term notes being proposed for restructuring.

Rickmers Trust Management, in an announcement to Singapore Exchange, said that the letter alleged that such holders of the notes "wish to directly take such legal steps and actions against the trust to enforce repayment of the notes, together with accrued interest", on the basis that DB International Trust, the notes' trustee, has "failed to institute any action against the issuer" since a written request purportedly made by holders of the notes on Sept 28 to the notes' trustee to inform the trust that the notes are immediately repayable.

Rickmers noted that the trustee-manager is in the process of validating the contents of the letter. Rickmers also said that the trustee-manager has not received any notice from the notes' trustee that the notes are immediately due and payable, and that the letter received "does not provide any evidence" that the notes' trustee has become bound to give such notice, or that the notes' trustee has failed to do so within a reasonable period.

According to Rickmers, under the terms and conditions of the notes, if any of the events of default specified in Condition 9 occurs which has not been waived, the notes' trustee may at its discretion, and if so requested by holders of at least 25 per cent in principal amount of the notes or if so directed by an extraordinary resolution of noteholders, give notice to the trustee-manager that the notes are immediately due and repayable.

"No noteholder shall be entitled to proceed against the trust unless the notes' trustee, having become bound to do so, fails to do within a reasonable period and such failure is continuing."