TORM in late-stage equity injection negotiations

TORM (OMX: TORM, NASDAQ: TRMD) said it has received two conditional proposals to inject 100-200 million USD in equity and cash initiatives. The company says that if implemented, these measures remove the risk of “an in-court solution”. TORM has been seeking ways to be able to continue operations.

The company says it has now entered final negotiations with the investor groups. There is an element of dilution for existing shareholders in the horizon although the company said existing shareholders would have the opportunity to subscribe new shares.

It now appears to be getting a new standstill period from the banks on its loans. The measures the company plans to implement are likely to be made available before the AGM on April 23th. TORM is up over 6% following the announcement.