Torm says reaches restructuring deal with banks

COPENHAGEN Tue Oct 2, 2012 2:32am EDT

COPENHAGEN Oct 2 (Reuters) - Debt-stricken Danish shipping company Torm A/S on Tuesday said its banks and partners had thrown it a lifeline consisting of a $100 million new working capital facility and deferred instalments on its $1.8 billion of debt.

The tanker and dry-bulk operator has for months been fighting for survival in a sector slump now in its fourth year, caused by a weak global economy, oversupply of vessels and low freight rates. (Reporting by Mette Fraende; Editing by Mark Potter)