FRANKFURT May 31 German shipping group Rickmers
said it would file for insolvency after bondholder HSH Nordbank
rejected its restructuring plan a day ahead of a
last-ditch bondholders' meeting.
Rickmers had proposed a revamp plan under which the equity
stake of owner Bertram Rickmers was to be reduced to 24.9
percent, while bondholders, HSH Nordbank and potentially another
bank would hold 75.1 percent.
But HSH "highly surprisingly" rejected that plan, Rickmers
said in a statement on Wednesday.
"According to the assessment of the management board and
supervisory board of Rickmers Holding AG the positive going
concern prognosis of Rickmers Holding AG does therefore no
longer apply," it said, adding its management board would file
for insolvency without undue delay.
Rickmers' loss more than doubled to 341 million euros ($383
million) in 2016, on sales of 483 million euros, amid
overcapacity in the market and falling freight rates.
($1 = 0.8902 euros)
(Reporting by Maria Sheahan)