shipping company’s 2012 restructure did
Danish shipping company Torm has restructured via a UK scheme of arrangement,
saving it from a costly Chapter 11 bankruptcy filing.
This latest segment of its restructure, which began
over seven years ago, continues the trend of troubled European companies using their international
structures to take advantage of UK corporate and insolvency
Shipping rates fell through the floor in 2008, said
Chris Mallon, a partner at Skadden Arps Slate Meagher & Flom in London,
who represented Torm. "These companies were losing money hand
Copenhagen-based Torm was caught up in the global
shipping slump, prompting an out-of-court reorganisation three years ago.
"In 2012 we stuck a plaster over it so to speak, but it
quite quickly became clear that a full-blown restructuring was
needed," he said. At the time, Torm sold a number of its
vessels to third party investor...