Two financial restructuring advisors have been appointed to search for a private equity cash injection to keep indebted Danish shipping company Torm alive, writes Reuters. M&A advisory and asset management firm Lazard had been appointed to work for the creditors and Evercore had been appointed to work for Torm, reports Reuters.
Reuters – Two financial restructuring advisors have been appointed to search for a private equity cash injection to keep indebted Danish shipping company Torm alive, shipping newspaper Lloyd’s List said on Tuesday.
The paper said M&A advisory and asset management firm Lazard had been appointed to work for the creditors and Evercore had been appointed to work for Torm.
Among the funds approached for capital was U.S. private investment firm Oaktree Capital Management, Lloyd’s List said, citing several senior shipping finance sources.
Torm’s spokesman said he had no immediate comment on the report.
On Jan 17, Torm said its banks had agreed to extend a deferral of instalments on its $1.8 billion of debt to Feb. 15 and it hoped to reach a comprehensive financing solution to secure its future.
The extension gave some breathing space to Torm, a tanker and dry-bulk operator whose existence hangs in the balance after a plunge in the shipping markets knocked it into the red and wiped 90 percent off the value of its stock last year.
A previous deferral and standstill of Torm’s debt covenants announced on Dec. 5 expired on Jan. 15 when Torm said it was still pursuing a deal with its lenders, including Danske Bank , Nordea, Danish Ship Finance and others. (Reporting by Copenhagen Newsroom. Editing by Jane Merriman)
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