And the private equity giant will be looking to appoint new directors after completing the ship for shares deal, with chairman Flemming Ipsen and three colleagues standing down today.
In documents released Tuesday in connection with an extraordinary general meeting, Torm said it will emerge from the restructuring with a net asset value of around $824m.
Oaktree will be issued with shares with a net asset value of $511m, Ipsen told investors today.
The deal, which received lender support earlier this year, sees Oaktree roll 25 trading ships and six newbuildlings into Torm. It is likely to be completed on 13 July, today’s statement said.
Ipsen says Torm will emerge from the process with 74 vessels with an average age of 10 years and a cash generative business.
However, with the deal secured, Ipsen says he and fellow directors Olivier Dubois, Alexander Green and Jon Syvertsen have “relinquished their mandate”.
“We believe that we have served our purpose in the restructuring phase and that the new shareholders should have the opportunity to elect their own representatives,” Ipsen said, according to the statement.
The takeover by Oaktree will continue the private equity owner’s rise in the shipping industry, and add a fourth major public company to its roster.
It is already a major shareholder in Star Bulk, one of the largest quoted bulker owners, Eagle Bulk, the world’s biggest supramax owner, and in Gener8 Maritime, the newly listed crude tanker giant.
Its vast shipping portfolio also includes Navig8 Chemical Carriers, a joint venture with Navig8 and Oceanbulk Container Carriers, a venture with Greek owner Petros Pappas.
Oaktree also backs Peter Georgiopoulos-led entity Maritime Equity Partners, along with fellow private investor The Blackstone Group, and Hansa Heavy Lift of Germany.
