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.