Rickmers Maritime, a Singapore-based shipping trust, has asked for clemency from its creditors regarding US$179.7 million of debt and a following $100 million of interest that it cannot pay, reported Bloomberg.
The company is requesting that to avoid liquidation similar to that of Hanjin bankruptcy, its debts be excused and in replacement $28 million for perpetual securities.
Terence Lin, Assistant Director of Bonds and Portfolio Management for iFast Group, said: “The shipping and oil and gas space has really been a minefield in the bond market.
“One of the positives from this is that there’ll be increased scrutiny on very levered companies, and a push for management to take corrective plans or pre-empt liquidation outcomes.”
Rickmers Maritime may become the latest victim to the shipping industry slump, caused by over-supply and under-demand.