The management board of HSH Nordbank AG has “surprisingly denied” approval of the term sheet for Rickmers Group’s planned financial restructuring, according to a statement from the company.
Rickmers Holding AG said in a statement Wednesday that the management board of HSH Nordbank AG has “surprisingly denied” approval of the terms and conditions set forth in the financial restructuring of ocean shipping conglomerate the Rickmers Group.
“According to the assessment of the management board and supervisory board of Rickmers Holding AG, the positive going concern prognosis of Rickmers Holding AG does therefore no longer apply. The management board of Rickmers Holding AG is forced to file for insolvency without undue delay,” the Hamburg-based shipping company said.
Rickmers Holding said that on April 19, it had reached an understanding with HSH Nordbank and other persons on a term sheet regarding the restructuring of material financial liabilities of the Rickmers Group that was subject to corporate approval of the bank as well as restructuring a five year bond due June 11 of next year.
“Notwithstanding, HSH Nordbank AG has highly surprisingly informed Rickmers Holding AG that the board of HSH Nordbank AG has rejected the credit applications of Rickmers Group and denied approval to the term sheet dated 19 April 2017 and rejected further negotiations of the restructuring,” the company said.
This latest announcement comes just one day before a bondholders meeting scheduled for June 1.The company said the meeting “will now resolve exclusively on the election of the joint representative of the bondholders.”
Rickmers had said in a document explaining the bond restructuring that it was needed because the shipping industry “has now been in crisis for eight years.”
With global trade below levels seen in previous years, intensive newbuilding order activity, “vessel charter-rates, which represent a main source of income for charter-fleet operators such as the Rickmers Group, have come under pressure once again considerably particularly in the course of 2016-2017.”
According to its website, at the end of 2016 Rickmers had 114 vessels with a combined capacity of 424,791 TEUs “in asset management at maritime assets and/or operating management at maritime services.”
Rickmers ‘forced’ to file for insolvency
