Oaktree to take majority stake in Torm

In return for a majority stake, Oaktree will provide an unspecified number of product tankers – tanker vessels that transport refined oil products. The deal is expected to be completed in Q1 of 2015.

The company says 61% of its current lenders support the restructuring proposal, in which they will write down their debt to present ship values in exchange for warrants and equity swap opportunities.

Torm received the restructuring proposal in September, and the distressed shipping company will also see a substantial dilution of existing shareholders in the restructuring.

At the end of Q2, Torm's debt stood at $1.367bn, while its fleet was valued at $931m.

The business first underwent a previous debt restructuring in 2012, in which a number of bank debtors took a 70% stake in the company, including HSH Nordbank, Danske Bank and Nordea.

Currently, 40% of the debt is controlled by around 60 hedge funds, which repurchased the loans from five banks.

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• Topics
• Nordics
• Industrials
• Oaktree Capital Management
• HSH Nordbank
• Nordea