Shipping group CMA CGM lost $515 mln in H1
French shipping group CMA CGM lost $515 million in the first six months of 2009, and is negotiating with banks to restructure its debt, its chief executive told Les Echos in an interview on Monday.
The world's third largest shipping operator, which has suffered from the downturn in commercial trade in the past year, faces a debt of "around $5.6 billion", incurred mostly because of ship orders it made before the crisis started, Rodolphe Saade, the son of founder Jacques Saade told the newspaper.
"Our first goal is to obtain the deferment of the deliveries of these ships", Saade said, adding that 49 ships were due for delivery by 2012.
Unlisted CMA GGM has launched a steering committee, which will "soon assess the terms of a plan aimed at securing the long term future of the group", Saade said.
Thanks to a cost reduction plan of $600 million, the executive hoped CMA CGM will return to positive results in 2010.
He did not give additional details and did not say whether the group would have to lay off workers.
A company spokesman however said the group didn't plan any redundancies.
CMA CGM, whose sales stood at $4.8 billion dollars during first half, employs a staff of 17.000 worldwide.
Saade said that the French government was closely monitoring the discussions of CMA CGM with its banks and does not rule out the possibility of a rights issue, which would allow the entry of a new investor in the group's capital.
The world's third largest shipping operator, which has suffered from the downturn in commercial trade in the past year, faces a debt of "around $5.6 billion", incurred mostly because of ship orders it made before the crisis started, Rodolphe Saade, the son of founder Jacques Saade told the newspaper.
"Our first goal is to obtain the deferment of the deliveries of these ships", Saade said, adding that 49 ships were due for delivery by 2012.
Unlisted CMA GGM has launched a steering committee, which will "soon assess the terms of a plan aimed at securing the long term future of the group", Saade said.
Thanks to a cost reduction plan of $600 million, the executive hoped CMA CGM will return to positive results in 2010.
He did not give additional details and did not say whether the group would have to lay off workers.
A company spokesman however said the group didn't plan any redundancies.
CMA CGM, whose sales stood at $4.8 billion dollars during first half, employs a staff of 17.000 worldwide.
Saade said that the French government was closely monitoring the discussions of CMA CGM with its banks and does not rule out the possibility of a rights issue, which would allow the entry of a new investor in the group's capital.