Brunswick Rail: Sumitomo entity declares default on loan agreement

By Caroline Salls

Pittsburgh, Dec. 12 – Brunswick Rail Ltd. said Sumitomo Corp.-controlled entity Lavender Tankers Inc. declared an event of default on its loan agreement with the company.

According to a news release, the Sumitomo entity has the right to accelerate the shareholder loan agreement as a result of the default.

Brunswick said it intends to contest the entity’s alleged right to demand immediate payment.

Meanwhile, Brunswick said it is continuing to seek solutions to its capital structure and will seek to address all amounts due under the shareholder loan, including an installment due on Dec. 31, as part of a wider restructuring process.

Brunswick Rail is a railcar operating lessor based in Moscow.

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