Rickmers Maritime Trust

(15-04-2017, 09:52 AM)CY09 Wrote: 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)

Their timing is bad. They might get more if they bought a timer. Idk anyway

(15-04-2017, 02:08 PM)Boon Wrote:

(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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That's my concern. If I am a buyer, i will ask for significant discount even when TEU is up because it can comes crashing down next year.
And this are no newly build  ships. Depreciation can be significant too.

(16-02-2017, 07:16 PM)CY09 Wrote: 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.

RMT Trust manager has announced that it is selling entire fleet for 113mil, additional 25-30mil impairment than the original 360mil estimation (might not have taken depreciation in the last 3 months into consideration). From FY16, it seems like 260mil of the 270mil is secured - they will get back ~50% of what is owned considering the sale+cash on BS, and remaining folks (MTN and shareholders) get back nothing as expected.

http://infopub.sgx.com/FileOpen/RM%20Ann...eID=449332

There are 5 vessels that are on long term chartered until the end of year and part of 2018.
I suppose the revenue is easily US$50 million. 

[Image: timeline-17022017.jpg]

http://maritimeglobalnews.com/news/rickm...hip-cms1fe

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, said, "We anticipate acquiring five 4,250 TEU vessels on May 15, 2017. These vessels are employed on charters that have staggered expirations in 2018 and early 2019 at a net daily charter rate of $26,850."

Not a bad buy isn't it?

Sounds about right. The 4250 TEU containers are selling at scrap value (about US$5m) now. Entire 14 vessels = 14 x 5 = 70m.

Remaining secured time charter = US$84.9m. On a bareboat or even net basis, this should be discounted about 40%, so around US$50m.

Total = 70 + 50 = US$120m.

I am curious in the announcement, "the sale proceeds from the proposed sale will be applied towards the full
repayment of the abovementioned senior secured loan facilities, which will also allow for the
discharge of the existing security over the sale vessels, and the remainder will be distributed to the
Trust’s unsecured creditors and used for expenses permitted under the BTA... "

Will there be leftover proceeds for unsecured creditors?

iirc, the five MOL vessels are chartered out on a time charter basis, so we will need to net off vessel operating costs for these 5 to know the cash inflow value.

selling at the bottom????

http://www.hellenicshippingnews.com/vhss...k-16-2017/
http://www.hellenicshippingnews.com/wp-c...week16.pdf

TradeWinds Wrote:Navios Partners is using $20m in equity to fund the ships, in what represents the group’s third major distressed fleet deal after two transactions with HSH Nordbank.

Five of the ships are on time charter, which Parquette says will contribute $52m in revenue.

VesselsValue prices the ships at $90.9m charter free. However, with the charters included, its discounted cash flow valuation rises to $137.6m.

........

Nolan describes the transaction as a fair deal, based on the value of steel and the time charters attached.

However, he added: “There is certainly risk of the obsolesce for the panamax vessels which are being acquired and are at an extreme competitive disadvantage to more efficient ships.

“In fact, four of the vessels being acquired have yet to operate or earn any revenue in 2017.

"Still, the risk of poor utilization is baked into the price of the acquisition, which is just slightly above scrap value.”

Source: TradeWinds: Third time's a charm for Navios?

navios-raises-75m-finance-rickmers-fleet-buy
http://splash247.com/navios-raises-75m-f...fleet-buy/

http://splash247.com/rickmers-maritime-i...le-navios/

Quite a good move by a noteholder to stop the sale. IMO, rickmers fleet had been sold too cheap. Transacting the fleet for close to scrap value was a steal