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2012 Torm loss set to grow by USD 150 million

Now, the Danish shipping company Torm expects to show a 2012 result with a loss before taxes of USD 500 to 530 million excluding further vessel sales and potential impairment charges, the shipping company announces in a stock exchange announcement.

The Danish Securities Council has confirmed the planned effects on Torm’s statutory accounts of the restructuring with the banks and time charter partner.

Having taken the accounting effects of the restructuring into consideration, the shipping company now expects to present a loss before taxes of USD 500 to 530 million excluding vessel sales and potential impairment charges.

Thereby, the accounting effects of the restructuring are valued at USD 150 million as the previous expectations of a loss before taxes of USD 350 to 380 million did not count in the accounting effects of the restructuring.

On the effects for the fourth quarter of 2012, the company says:

- The capital increase of USD 200 million by conversion of debt will be recognized as an increase in equity

- A net loss of approx. USD 150 million mainly related to cancelled time charter agreements  (operational leases) and finance lease time charter agreements will be recognized in the P/L

- The net impact on equity is hereafter positive by approx. USD 50 million

- The net effects do not have an impact on liquidity

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