TORM reach temporary agreement with its bank group

5 December 2011

As stated in announcement no. 19 dated 17 November 2011, TORM is as part of a long-term comprehensive financing solution in negotiations with its banks regarding an extension of the Company’s repayment schedule for ship financing.

During these negotiations, TORM and the Company’s bank group have agreed on a temporary deferral of instalments and covenant standstill. The agreement will initially be valid until 15 January 2012, but may be prolonged.

“The banks are committed to work constructively with the Company to reach a solution, and a Co-ordinating Committee has been appointed to represent the lenders," say Danske Bank, Danish Ship Finance and Nordea in a joint statement.

“It is very positive that our lending banks support a swift and coordinated negotiation process. This agreement provides the short-term flexibility that will enable a long-term sustainable solution,” says CFO Roland M. Andersen.

About TORM
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 runs a fleet of approximately 165 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.

TORM, press release