March 1, 2012 / 2:50 PM / 6 years ago

Torm CEO expects new extension to debt standstill

COPENHAGEN, March 1 (Reuters) - The head of Danish shipping company Torm A/S said on Thursday he expected to announce later in the day or on Friday an extension to a deferral of repayments on the company’s $1.87 billion in debt.

The previous deferral of repayments and standstill on debt covenants, which was announced on Feb. 17, expires on March 1.

“My personal expectation is that the extension of the standstill will progress pretty much the same way as it has the last couple of times,” Torm Chief Executive Jacob Meldgaard said on a conference call for analysts.

“There is a process internally on the banks’ side, that has to be completed, and then we will be announcing either today or tomorrow an extension of the standstill,” Meldgaard said.

His remarks came after Torm reported deepening losses for 2011 and said it was still pursuing a long-term financing deal with its lenders.

He said the company did not expect to run out of cash. (Reporting by John Acher; Editing by David Holmes)

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