Maritime tanker company, Torm has missed its loan deadline for restructuring.
The company announced that it is in non-compliance with its loan terms after missing its deadline, while negotiations with its lenders and Oaktree Capital Management continue.
Torm’s super senior working capital facility has been extended until 31 March 2015 to allow for the completion of the recapitalisation process. However, the extension was subject to Torm agreeing that by 20th November the company will agree to “restructuring and support agreement” with the co-ordinating committee of lenders.
The company has previously announced that it has an agreement in place with Oaktree Capital Management for a possible restructuring but this is yet to receive support from all lenders.
According to Torm, while the company is currently in non-compliance with the milestone requirements of the loan facilities, it is not expected that it will be enforced while negotiations are on-going.
The transaction with Oaktree Capital Management is expected to be completed in the first quarter of 2015.
The company said: "Torm considers this as a consequence of the development in the restructuring process and does not expect this to have any immediate financial consequences."