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Rickmers Maritime Trust moved closer to liquidation last week, as its bondholders rejected a financial restructuring that might have saved the company. It’s deja vu for the ocean shipping industry. Last August, Hanjin Shipping filed for receivership—and has since begun the liquidation process—after its creditors failed to approve a restructuring proposal.
The Rickmer proposal would have swapped 60 percent of the $69 million in debt due in May 2017 for equity and pushed back the due date of the remaining $28 million to 2023. Rickmers announced last September that it would not be able to pay the May 2017 debt when it became due and that liquidation was on the table. The ship owner also missed a $4-million interest payment last month.
Rickmers said in a statement that it would “prudently consider and assess alternative proposals for the restructuring of the notes…” It also noted that the company “is in discussions with certain of its senior lenders in relation to a potential divestment of assets for working capital purposes.”
Earlier this month, Rickmers announced that it would scrap the India Rickmers—a containership it paid $60 million—to pay down debt to Commerzbank AG, which has a security interest in the vessel.
Rickmers problem is that it owns a fleet of panamax vessels made obsolete by the expanded Panama Canal. Once able to handle containerships in the 4000-TEU range, the expanded locks can now accommodate vessels of up to 14,000 TEU.
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