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Rickmers Trust faces bankruptcy if restructuring cannot be achieved

SINGAPORE's Rickmers Trust Management, the trustee-manager of Rickmers Maritime, hopes to avoid bankruptcy through a debt conversion scheme, Bloomberg reports. 

The trust said it was seeking leniency from creditors for US$253 million in debt due in 2017 and plans to issue 1.32 billion new units in the value of S$60 million (US$44.1 million) to pay down a S$100 million debenture maturing in May 2017, it said in an exchange filing.



"The proposal that we are presenting is equitable," said Rickmers Trust CEO Soeren Andersen. "This would give the trust more time to weather the depressed market, and underpins its solvency."



A Singapore-based shipping trust that operates containerships is seeking to issue new units in the trust to pare obligations, as debt woes plague the industry.



The debt conversion plan also involves swapping the remaining S$40 million of the securities into new notes maturing in 2023. 



Numbers of troubled Singapore firms is swelling as Marco Polo Marine, KS Energy and other oil and gas service providers ask for time to repay debts. 



Energy-services provider Swiber Holdings filed to operate under court supervision in late July after running out of cash to pay lenders and bondholders, while Keppel Corp and Sembcorp Marine, the world's biggest builders of oil rigs, have both reported a plunge in profits.
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