The revised plan includes a partial redemption of S$60m of the principal in exchange for 60% of the enlarged units of the trust, which will reduce the outstanding principal amount under the notes to S$40m repayable in November 2023.
The company has also proposed to issue 1.32bn new units representing 150% of the current number of units outstanding of the trust.
“One of the key suggestions raised at the informal meeting was for a more substantial debt to equity swap, which requires unitholders’ approval at an extraordinary meeting. We can’t be sure that unitholders will approve the dilution, but we will try,” said Soeren Andersen, chief executive officer of Rickmers Trust Management.
Rickmers warned last week that if a restructuring was not completed then the company faced liquidation, resulting in zero return for investors. The initial debt refinancing proposal met fierce resistance, with 30 bondholders forming a steering committee which plans to appoint a legal adviser to negotiate better terms.