Torm A/S AGM in progress

Troubled shipping company Torm A/S (OMX: TORM, NASDAQ: TRMD) has gotten its AGM on the way after a one-hour delay according to a borsen.dk live blog. The annual report was augmented with new information detailing the dire situation in a last minute change. A share capital decrease allowing a major equity issue to lending banks and charter partners is being suggested. The company would then be given a revolving credit facility and a reprieve period from installation payments.

This kind of a solution would dilute existing shareholders around 13:1, meaning they would keep only about a 7.5% stake. Without such an action, the company will not have sufficient funds to continue operations. Gabriel Panayotides owns about half of the company through Beltest Shipping Company Ltd. and Menfield Navigation Company Limited. It is presumed he would not be a part of the solution. Greek members of the board Gabriel Panayotides, Angelos Papoulias and Stefanos-Niko Zouvelos will not be re-elected into the Board of Directors.