Torm has been granted a waiver on its debt covenants as it continues discussions with its lenders for a long term solution to its finance troubles.

The tanker and bulk carrier owner was to due test its compliance with loan covenants on 30 June, a test it expected to fail according to the company's first quarter results.

Torm lost $222m in the first quarter, owing largely to a $195m impairment.

The company's total interest-bearing debt stood at $1.6bn at the end of March 2014.

Torm said it expects lenders "to remain supportive" as it negotiates a sustainable capital long-term structure.