Shipping company Torm is selling five ships, forcing the company to perform impairments and lower its expectations for 2012 to an even bigger deficit, says the company in a press release issued late Wednesday.
Torm signed a restructuring agreement in 2012, which means that a series of the company's banks can force Torm to sell ships in order to build liquidity.
The consortium of banks are now using this option, and Torm has put the ships up for sale. The sales process is on schedule and expected to be completed in 2013, writes the company.
In Torm's annual report for 2012, to be published on March 13th, the ships will featured as "assets designated for sale," and as a result their value will be impaired by USD 74 million.
This means that Torm is lowering its expectations and now expects a total deficit of USD 579 million before taxes for 2012. Before the impairments, the expected total deficit was USD 500-530 million.