ShippingWatch

Banks could force Torm into fire sale

The shipping company could be forced to sell 22 ships, almost one third of its total fleet of owned ships, as some of the banks have ensured options to withdraw from their engagements.

Photo: Rederiforeningen

Torm could be forced to sell 22 ships, or almost one third of its total fleet of owned ships. This is the result of the company’s agreement with the 14 involved banks, of which three have claimed an option that enables them to withdraw from the engagements if they want to. Five ships will be sold immediately.

According to ShippingWatch’s information, the section of the agreement concerning certain specific options is an expression of one of the compromises the shipping company has had to make in order to seal the restructuring agreement. The sale of 22 ships at the same time will shrink the company’s fleet of owned ships, and could also have serious consequences for the number of employees at Torm, should the ships leave the company’s control completely. As a result, Torm will likely fight to retain both the commercial and technical management of the ships following a potential sale.

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