Rickmers fails to secure backing needed for restructuring

Germany’s troubled Rickmers Group has failed to secure from bondholders the majority support that it needed to carry out a proposed restructuring. Rickmers is making a final attempt to make bondholders think again. Bondholders voted between May 8th and 10th on €275m 8.875% bonds 2013/2018. Agreement from the required 50%-plus of the outstanding bond capital was not achieved.

“Against this background, Rickmers Holding AG will for the last time invite all bondholders to vote in favour of the restructuring plan in the so called second meeting of the bondholders in form of a physical meeting on 1 June 2017,” Rickmers said.

Rickmers said however that, if at this second bondholders’ meeting bondholders representing fewer than 25% of the outstanding bond capital turn up, the meeting would not be quorate. “If this quorum is not achieved or the bondholders do not approve the proposed restructuring plan by a qualified majority (75% of voting rights present) the reorganization would likely fail and the positive continuation forecast of Rickmers Holding AG would likely no longer apply,” Rickmers said.

Sole shareholder Bertram Rickmers is prepared to reduce his stake from 100% to 24.9%, giving key stakeholders majority control of the company, but the debt-for-equity offer does not appear to be persuading creditholders.