Global law firm White & Case LLP has advised the co-ordinating committee of secured lenders of TORM A/S ("TORM" or the "Company") in connection with the Company's recently completed successful restructuring. TORM, which is headquartered and listed in Copenhagen, is one of the world's largest overseas shipping companies in the produce tanker and dry bulk market. The co-ordinating committee represented lenders who made approximately US$1.8 billion of loans to TORM, and whose loan facilities were governed by English or Danish law.
TORM originally announced the signing of a restructuring agreement between its secured lenders and a significant proportion of its time charter partners on 2 October 2012. At that time, the Company stated that the implementation of the restructuring would avoid a potential bankruptcy filing and preserve the Company's long-term viability. Importantly, the TORM restructuring provides the Company with fresh liquidity through a new US$100 million super senior working capital facility, restructures and extends the maturities of the Company's existing secured bank debt (of approximately US$1.8 billion), creates a new corporate and group structure for subsidiaries of TORM, and gives the participants in the restructuring new equity in the Company that will represent 90% of the Company's shares, with the existing shareholders retaining 10 per cent ownership following the capital increase.
"This complex cross-border transaction was comprised of a simultaneous financial and operational restructuring, and included significant issues under the laws of multiple jurisdictions," said White & Case partner and Global Practice Head of the Financial Restructuring and Insolvency Group, Thomas E Lauria. "The achievement of this out-of-court resolution without the risk, cost and delay of a court proceeding is a tribute to the efforts and patience of all parties involved, and will allow the TORM group to continue its business."
The London deal-team was led by finance partner Magdalene Bayim-Adomako, and newly promoted partner restructuring partner David Manson. The White & Case team in New York was led by partners Thomas E Lauria, Scott Greissman, David Joyce and newly promoted partner Richard Kebrdle in Miami.
"As shipping companies like TORM are international by nature, having a global team able to provide local law advice and expertise in key shipping jurisdictions was critical. As many as 15 different White & Case offices were involved in the project, and leveraged the very best of the Firm's top tier restructuring and finance deal experience and multi-jurisdictional expertise," said White & Case partner Magdalene Bayim-Adomako.
In addition, partners and counsel David Johansen, Richard Horsch, Andrew Ambruoso (New York), David Barwise and Guan Feng Chen (Singapore), Mark Powell (Brussels), Xiaoming Li and Xin Wang (Beijing), Anthony Vasey (local partner, Hong Kong), Sylvia Fiebig and Mattias Bochum (local partner, Hamburg) together with an experienced team of associates across various different offices, all provided support.
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