Rickmers Maritime Trust

A great pity to the existing shareholders... for years, many warnings have been given. It is very very obvious from the balance sheet that this company is doing stupid things that will lead to insolvency. Can you imagine, paying out dividends year after year without paying down the original loan? ... yet people can come to the forum to talk about how healthy the balance sheet is, how cheap the company is, yes very cheap... dropping to zero now!!!

Troubled Rickmers Maritime Sells Vessel
http://shipandbunker.com/news/world/1075...lls-vessel

Rickmers full year results wasnt of much surprise with more impairments.

http://infopub.sgx.com/FileOpen/4Q2016%2...eID=439394

This paragraph stands out:

"The carrying amount of vessels as at 31 December 2016 was US$499.6 million (2015: US$706.0 million). If the Group is unable to continue as a going concern, a further impairment of approximately US$360 million may be necessary.

With only equity of US$ 183,473,000; rickmers is making it quite clear that MTN bondholders and shareholders will get nothing in an event of liquidation and banks will likely lose 30% of their loan principal.

it is quite a strong message and a warning to its debt and shareholders of not allowing a restructure to keep it alive.

Given this scale of impairment, 360m out of 499m, would we expect something similar for first ship lease trust?

hsh-nordbank-sets-april-15-deadline-rickmers-maritime
http://splash247.com/hsh-nordbank-sets-a...-maritime/

Winding Up of the Trust and Cancellation of the Annual General Meeting

...
The Trustee-Manager is disappointed to have to announce that, after much effort placed on achieving a consensual restructuring among creditors, potential investors have not supported an injection of new equity into the Trust due to the challenges in obtaining, through a consensual process between parties, noteholders’ and other creditors’ consent for significant debt write-offs.

The Trustee-Manager has previously obtained unitholders’ approval at its extraordinary general meeting held on 31 October 2016 to wind up the Trust in accordance with the Business Trusts Act, Chapter 31A of Singapore (“BTA”), and the trust deed constituting the Trust (“Trust Deed”), in the event of an unsuccessful restructuring of the Trust and where it is impracticable or inadvisable to continue the Trust in the opinion of the Trustee-Manager.

In light of the aggravated illiquidity and lack of new investors, the Trustee-Manager opines that it is impracticable to continue the Trust and that it shall therefore be wound up.

The winding up decision is made in light of no other possible alternatives to restructure the liabilities of the Trust with the objective of delivering value on an accelerated basis to all creditors to avoid uncertainties and risks involved in a protracted winding up process. The Trustee-Manager is in advanced discussions with a potential buyer for the Trust’s assets which may allow the Trust to distribute cash recoveries upfront to unsecured creditors. While the parties are in advanced discussions, no deal has been finalized at this stage.
...

More details in http://infopub.sgx.com/FileOpen/RM%20Ann...eID=447837

The Trustee-Manager will advise the amount of recoveries to its unsecured creditors via their respective agents and trustees in due course.
Regrettably, unitholders are highly unlikely to recover any of their investments.

RIP, Rickmers Maritime Trust

First victim dead. 

Unlucky for Rickmers shareholders is that 4250 TEU rates have ran up from US$4,400 to US $10,000. It means the container ships are profitable to run now. Good news is that banks will likely recover their full capital during an asset sale now while bondholders may get back something instead of previously, nothing

I am amazed at how bondholders managed to time their "no" perfectly to recover some value (sarcastic tone)

How dynamic is the TEU rates ? For a buyer, will they take this into consideration ?

Cory

(15-04-2017, 12:01 PM)corydorus Wrote: How dynamic is the TEU rates ? For a buyer, will they take this into consideration ?

Cory

https://ycharts.com/indicators/container...eu_vessels

https://www.toepfer-transport.com/wp-con...-17_02.pdf
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