Don't celebrate too quickly about TORM's discussions with investors

1220 GMT 27 March

[Dow Jones] It’s positive that Torm (TORM.KO) is in investor talks about a cash and equity injection, but one shouldn’t celebrate prematurely, says analyst Dan Togo Jensen at Handelsbanken Capital Markets. “It’s comforting to hear that there are investors who are considering investing in Torm. But nothing is settled or final yet,” says the analyst. Whether the $100-200 million the investors offer to invest will be enough to save the company depends on a number of factors: “it all depends. As is, no, but if banks and time-share owners are willing to take a haircut you could see a future structure where this will be enough,” Jensen says. Adds that an announcement was rather expected after Torm’s grace period with its banks ran out. Shares trade 4.0% higher at DKK3.12.

  • Katarina Gustafsson, Dow Jones Newswires