A part of Watch Media

ShippingWatchWednesday8 February 2023

  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Search
  • Log in
  • Latest
  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
27/10/2014at 09:08

US-based equity fund could be new owner of Torm

US-based private equity fund Oaktree - the world's largest equity fund in shipping - looks set to secure a controlling stake in Torm through a new agreement announced on Monday.
BY OLE ANDERSEN

Torm has entered into an agreement with a group of its current lenders, representing 61 percent of Torm's ship financing, and US-based private equity fund Oaktree Capital Management regarding a possible restructuring of the company.

Oaktree, which is considered the most active private equity fund in shipping and which already owns 22 ships in Torm's fleet, could secure a controlling stake in the carrier, says the company in a brief to the stock exchange on Monday.

Oaktree ready for new shipping investments 

"The final terms of the proposed transactions to implement a restructuring of Torm will be subject to further negotiations between the relevant parties. At this stage, the restructuring is expected to stipulate that the lenders will initially write down the debt to the current asset values in exchange for warrants and may elect to convert part of the remaining debt into new equity in the company," says Torm:

"Oaktree would contribute product tanker vessels in exchange for a controlling equity stake in the combined Company, which will reinforce TORM’s position as one of the largest owners in the product tanker segment. The agreement also envisages a new working capital facility."

Final plan ready in a few months

Torm expects to be able to present the final restructuring plan and transaction structure during the 1st quarter 2015, at the latest.

Earlier this year, companies controlled by Oaktree acquired 13 product tankers from Torm through one of the carrier's lenders, Danish Ship Finance, which opted to exercise a special option right granted to the bank in relation to the complete rescue plan for the carrier back in 2012.

Oaktree is a key player when it comes to Torm's future. The equity fund has already acquired 22 ships from the Danish carrier, furthermore leaving Monaco-based Celsius to oversee management of the vessels, which is done through a commercial and technical management agreement with Torm where the ships continue to operate.

Five banks have signed the Torm agreement

Torm lenders present proposal for debt restructuring

Lenders provide Torm with capital for another six months

Torm confident in bank agreement within six months

Torm made USD 24 million deficit in the 2nd quarter 

Related articles:

  • Five banks have signed the Torm agreement

  • Torm lenders present proposal for debt restructuring

    For subscribers

  • Lenders provide Torm with capital for another six months

    For subscribers

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

!
Newsletter terms

Front page now

Maersk CEO Vincent Clerc (left) and MSC CEO Søren Toft are following very different strategic directions. | Foto: Jacob Gronholt-pedersen/reuters/ritzau Scanpix og Jason Decrow/ap/ritzau Scanpix
Container

Maersk could be heading for a price war with MSC

After a profit of historic proportions in 2022, Maersk is facing a new reality this year, entailing a potential price war unleashed by the carrier’s partner in the disbanded 2M alliance, MSC, predicts Drewry.
  • Opinion: Maersk and MSC heading for direct confrontation over customers
  • Drewry director eyes one central weakness in Maersk's strategy

For subscribers

Krisen på fragtmarkedet styrker DSV's position i forhold til rederierne: ”I og med at vi er en af de store aftagere af søfragt, har vi også et samarbejde med rederierne, som er strategisk og forankret i direktionen,” siger DSV's topchef, Jens Bjørn Andersen. | Foto: Lars Krabbe/Foto: Lars Krabbe/Ritzau Scanpix
Logistics

DSV to support box carriers that provided help during Covid chaos

For subscribers

Foto: Rebecca Naden
Tanker

Countdown to clash over Euronav's board composition has begun

For subscribers

Maersk is heading for its second record profit, setting a new benchmark in Danish business history. | Foto: Jonas Walzberg/AP/Ritzau Scanpix
Container

Maersk on track to achieve record profit for second consecutive year

For subscribers

Foto: Sund & Bælt
Offshore

Danish authorities suspending 23GW of offshore wind projects

For subscribers

Foto: Casper Dalhoff / Ritzau Scanpix
Container

Maersk redirects traffic following earthquake

For subscribers

Further reading

Krisen på fragtmarkedet styrker DSV's position i forhold til rederierne: ”I og med at vi er en af de store aftagere af søfragt, har vi også et samarbejde med rederierne, som er strategisk og forankret i direktionen,” siger DSV's topchef, Jens Bjørn Andersen. | Foto: Lars Krabbe/Foto: Lars Krabbe/Ritzau Scanpix
Logistics

DSV to support box carriers that provided help during Covid chaos

DSV customers found themselves in a bind when box carriers were able to allot limited ship space as they saw fit during the pandemic. Now the balance has shifted.

For subscribers

Foto: Magnus Møller
Featured

Eitzen son wants to electrify shipping as new CEO of Christiania Shipping

New Christiania Shipping CEO Fridtjof C. Eitzen maintains that acquisitions are on hold after a record year. The 36-year-old marine engineer, fifth generation in the Eitzen dynasty, wants to electrify shipping.

For subscribers

Maersk CEO Vincent Clerc (left) and MSC CEO Søren Toft are following very different strategic directions. | Foto: Jacob Gronholt-pedersen/reuters/ritzau Scanpix og Jason Decrow/ap/ritzau Scanpix
Container

Maersk could be heading for a price war with MSC

After a profit of historic proportions in 2022, Maersk is facing a new reality this year, entailing a potential price war unleashed by the carrier’s partner in the disbanded 2M alliance, MSC, predicts Drewry.

For subscribers

Jobs

  • Chartering Manager for Lauritzen Bulkers A/S

  • Fleet Manager

  • Copenhagen Shipping Company is hiring a skilled cargo broker

  • Foundation Package Manager - Offshore wind industry

  • Ambitious employee for Shipping office wanted

  • Vessel Manager Marine and QA

  • Commercial Contract Manager for the Offshore Wind Industry

  • Senior Financial Controller

  • Head of P2X Marketing and Sales (m/f/d)

See all jobs

Latest news

  • DSV to support box carriers that provided help during Covid chaos – 7 Feb
  • More tankers embark on illicit sailings following embargo on Russian oil – 7 Feb
  • Monjasa to provide green ammonia through new collaboration – 7 Feb
  • Countdown to clash over Euronav's board composition has begun – 7 Feb
  • New major port project underway in the Baltic Sea region – 7 Feb
  • Bank DNB sees box market reach record lows in coming years – 7 Feb
  • Maersk on track to achieve record profit for second consecutive year – 7 Feb
  • Maersk could be heading for a price war with MSC – 7 Feb
  • Oil prices extend gains following earthquake and Chinese demand rebound – 7 Feb
  • Maersk redirects traffic following earthquake – 7 Feb
See all

Jobs

  • Chartering Manager for Lauritzen Bulkers A/S

  • Fleet Manager

  • Copenhagen Shipping Company is hiring a skilled cargo broker

  • Foundation Package Manager - Offshore wind industry

  • Ambitious employee for Shipping office wanted

  • Vessel Manager Marine and QA

  • Commercial Contract Manager for the Offshore Wind Industry

  • Senior Financial Controller

  • Head of P2X Marketing and Sales (m/f/d)

See all jobs

Colophon

ShippingWatch
Search

Sections

  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
  • Sitemap
  • RSS feeds

Editor

Tomas Kristiansen

tk@shippingwatch.dk

Tel.: +45 3330 8360

  • About ShippingWatch

Editor-in-chief

Anders Heering

Publisher

JP/Politiken Media Group Ltd

Advertising

annoncering@infowatch.dk

Tel.: +45 7077 7445

Advertising

Job Advertising

job@infowatch.dk

Tel.: +45 7077 7445

Jobs

Subscription

Try ShippingWatch or get an offer for a subscription meeting the exact needs of you or your company.

shippingwatch@infowatch.dk

Tel.: +45 7077 7445

Learn more about subscriptions here

Address

ShippingWatch

Rådhuspladsen 37

1785 Copenhagen K, Denmark

Tel.: +45 3330 8360

Guidelines

  • Privacy Policy

Copyright © ShippingWatch — All rights reserved

Microsoft is in the process of discontinuing Internet Explorer – and so are we.
For a better experience, we recommend using one of the following browsers.

Kind regards,
ShippingWatch

Google ChromeMozilla FirefoxMicrosoft Edge