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Rickmers Maritime's ability to continue as going concern affected after interest default

THE trustee-manager of Rickmers Maritime warned after trading hours on Tuesday that the default on interest payment on its outstanding notes could challenge the ability of the shipping trust to continue as a going concern.

Rickmers Trust Management (RTM) said the grace period of five business days from the Nov 15 due date on the S$4.26 million interest has lapsed.

Rickmers Maritime is also in default under terms of the agreements of bank loans extended to the shipping trust and its subsidiaries, which contained cross default and/or cross acceleration clauses, its trustee-manager said.

RTM said it continues to be in discussions with its senior lenders to obtain standstills and/or waivers in respect to its obligations under the bank loan and facilities.

The trustee-manager also said the trading suspension of the units of the trust and of notes it requested on Nov 15, 2016, is expected to continue until the going concern issue has been resolved.

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It added that it will continue to analyse the effect of the above events on the trust, and to discharge its duties to preserve the value of the trust.

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