March 1, 2012 / 8:21 AM / 6 years ago

Torm says still pursuing deal with creditors

COPENHAGEN, March 1 (Reuters) - Danish shipping company Torm reported deepening losses on Thursday and said it had not yet reached an agreement with its lenders on a solution for its $1.8 billion in debt .

“With the current freight rate level and the fact that the debt is payable on demand, Torm is required to conclude a long-term comprehensive financing solution shortly to ensure the Company’s operations and liquidity throughout 2012,” Torm A/S said in a statement.

The most recent deferral of repayments and standstill on its debt covenants expired on March 1.

Torm also said it was in a “very difficult situation” at the time of its 2011 Annual Report, as the deterioration in the global economy and excess tonnage capacity severely affect the product tanker freight market for the third consecutive year.

Torm, a dry-bulk and tanker operator with about 165 vessels, is one of several shipping companies that have been forced to the brink of, or into, bankruptcy by the global economic slump that has hit demand for cargo, freight rates, ship values and stock prices. (Reporting by John Acher)

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