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SINGAPORE : Rickmers Maritime has been granted a five-year extension to repay a US$130 million top-up loan facility from its lenders, the company said in a stock exchange filing.
At the same time, Polaris, a sister company within the Rickmers Group, has released the shipping trust from its obligation to buy seven vessels worth US$918.7 million.
Polaris will be paid compensation of US$64 million, with US$15 million in the form of cash and the remaining US$49 million in an interest bearing convertible loan.
The interest on the loan will be at a 3-month US dollar London Interbank Offered Rate, with an additional 1.25 per cent per annum, which may be repaid any time on or before 31 March 2014.
If paid before the date, the interest will be retroactively increased to a 3-month US dollar London Interbank Offered Rate plus 3 per cent per annum.
Should Polaris take the convertible option by the March deadline, the loan amount can be converted to units in the trust at 48 cents per unit, a 25 per cent premium on the average trading price in May.
Rickmers Maritime will be seeking specific approval from shareholders in an upcoming extraordinary general meeting.
The Singapore-listed shipping trust has been sailing through rough waters due to the downturn.
In March, its auditors had cast doubt on the company's ability to service its borrowings and financial commitments.
At the time, Rickmers owed lenders some US$128.7 million, while it was carrying unfulfilled financial commitments of US$128 million for not taking delivery of vessels, and existing capital commitments of US$780.7 million.
- CNA/al
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