Accounting Effects of the Restructuring
COPENHAGEN, Denmark, Nov 15, 2012 (Menafn - GlobeNewswire via COMTEX) --With reference to announcement no. 35 dated 7 November 2012, the planned effects on TORM's statutory accounts of the restructuring with the banks and time charter partners have been confirmed by a ruling from the Danish Securities Council. The net effects in the fourth quarter of 2012 will amount to:
--The capital increase of USD 200 million by conversion of debt will be
recognized as an increase in equity
--A net loss of approx. USD 150 million mainly related to cancelled time
charter agreements (operational leases) and finance lease time charter
agreements will be recognized in the P/L
--The net impact on equity is hereafter positive by approx. USD 50 million
--The net effects do not have an impact on liquidity
TORM maintains a forecasted loss before tax of USD 350-380 million excluding the accounting effects of the restructuring. The Company forecasts a loss before tax of 500-530 million for 2012 including the accounting effects of the restructuring and excluding further vessel sales and potential impairment charges. The Company will make further details available in the listing prospectus planned for later this year.
Contact TORM A/STuborg Havnevej 18
Jacob Meldgaard, CEO, tel.: 45 3917 9200DK-2900 Hellerup, Denmark
Tel.: 45 3917 9200 / Fax: 45
Roland M. Andersen, CFO, tel.: 45 3917 92003917 9393
C. Soegaard-Christensen, IR, tel.: 45 3076 1288www.torm.com
TORM is one of the world's leading carriers of refined oil products as well as a significant player in the dry bulk market. The Company operates a fleet of approximately 120 modern vessels in cooperation with other respected shipping companies sharing TORM's commitment to safety, environmental responsibility and customer service.
TORM was founded in 1889. The Company conducts business worldwide and is headquartered in Copenhagen, Denmark. TORM's shares are listed on NASDAQ OMX Copenhagen (ticker:TORM) and on NASDAQ in New York (ticker:TRMD). For further information, please visit www.torm.com.
Safe Harbor statements as to the future
Matters discussed in this release may constitute forward-looking statements and may be more detailed than regular practice. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and statements other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although TORM believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, TORM cannot guarantee that it will achieve or accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward- looking statements include the conclusion of definitive waiver documents with our lenders, the strength of the world economy and currencies, changes in charter hire rates and vessel values, changes in demand for "tonne miles" of oil carried by oil tankers, the effect of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled dry-docking, changes in TORM's operating expenses, including bunker prices, dry-docking and insurance costs, changes in the regulation of shipping operations, including requirements for double hull tankers or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by TORM with the US Securities and Exchange Commission, including the TORM Annual Report on Form 20-F and its reports on Form 6-K.
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SOURCE: TORM A/S
Forward-looking statements are based on management's current evaluation, and TORM is only under an obligation to update and change the listed expectations to the extent required by law.
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