Troubled Singapore based shipping trust and container operator Rickmers have had a debt restructuring plan rejected by investors and shareholders.
Back in September the company requested leniency and the excusal of debts after it was revealed that they owe over $300 million in debt and interest payments.
It is feared that the company may face a similar fate to Hanjin, whose infamous collapse has sent waves around the shipping industry.
On Wednesday (December 21), Rickmers revealed that a revised resolution plan that offered a partial redemption of $60 million in exchange for 60% of the enlarged units of the trust was overruled by the board. Holders voted strongly against the suggestions and with 315 votes cast, there were 212 (67%) against.
In a press release the company said “The Trustee-Manager will prudently consider and assess alternative proposals for the restructuring of the Notes should such proposals be presented”.
Rickmers look to be in a state of rapid insolvency and if a proposal is not made soon, it could spell the end for the Singaporean company. Recently they were forced to send a seven year old containership to scrap, the youngest ever sent for breaking.