Torm adopts English law to access SOA

Author: Lizzie Meager | Published: 28 Jul 2015
The Danish shipping company’s 2012 restructure did little more

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 processes.

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 over fist."

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...