Rickmers seeks restructuring to relieve debt woes

It wouldn't be able to repay $245.2m of senior secured bank debt due March 2017.

Singapore-based shipping trust Rickmers Maritime is on its knees asking creditors for leniency on about $345.2 million debt.

According to the group's presentation filed to the Singapore Exchange, The amount due next year comprises $245.2 million (US$179.7m) of secured senior bank debt due March 2017 and $100 million medium term notes due May 2017.

The group is asking noteholders to exchange their medium term notes with $28 million of new perpetual convertible bonds to avoid liquidation, allow continued coupon payments and share equity upside.

It proposes to extend a large part part of secured bank debts to 1Q2021; includes a moratorium on principal repayments to 4Q2016.

For the group this is "key to give the Trust sufficient time to manage liabilities in depressed market."