TORM initiates scheme process, exceeds minimum required lender support

By Caroline Salls

Pittsburgh, May 12 – TORM A/S initiated the scheme of arrangement process to implement its restructuring by filing an application at the High Court of London, according to a news release.

TORM said the use of a scheme of arrangement will allow the restructuring to be implemented without 100% lender consent, as long as the scheme has the support of 75% by value and a majority in number of the relevant classes of the company’s lenders to vote at any scheme meeting.

According to the release, TORM’s new restructuring agreement has been signed by the company, Oaktree Capital Management and a majority of the lenders holding a total of 94% of the existing loan facilities, meaning TORM has already obtained the required minimum lender consent.

The company said it is seeking to achieve the support of all of its lenders for the implementation of the restructuring.

The final implementation of the restructuring would be subject to required approvals by public authorities.

TORM is a Copenhagen-based carrier of refined oil products and is involved in the dry bulk market.

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