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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!!!
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Given this scale of impairment, 360m out of 499m, would we expect something similar for first ship lease trust?
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Winding Up of the Trust and Cancellation of the Annual General Meeting
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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
Specuvestor: Asset - Business - Structure.
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15-04-2017, 09:52 AM
(This post was last modified: 15-04-2017, 09:54 AM by CY09.
Edit Reason: edits
)
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)
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How dynamic is the TEU rates ? For a buyer, will they take this into consideration ?
Cory
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(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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Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.