CMA CGM SA bondholders approved changes to the terms of their notes that will allow the shipping operator to raise more debt and help it avoid bankruptcy. Holders of $570 million of senior bonds agreed to change the terms of the debt, giving new lenders priority for payment in a default, Anne-France Malrieu, a company spokeswoman, said in a telephone interview today.
The Marseille-based company had warned investors in its euro- and dollar-denominated bonds due 2012 and 2013 that without their agreement, the shipping operator might have to seek bankruptcy protection. The company still needs court approval to raise new financing that would be senior to existing debt.
CMA CGM is seeking to restructure $5.6 billion of borrowing and raise new money, according to a Dec. 16 notice to bondholders. The company is in breach of conditions on most of its debt after suffering from a slump in world trade amid the deepest financial crisis since the 1930s.
The so-called consent solicitation concerned the company’s 293.3 million euros ($418 million) of outstanding 5.5 percent bonds due May 2012 and its remaining $149.8 million of 7.25 percent notes maturing in February 2013, according to data compiled by Bloomberg.
A new credit line and plans to refinance $4.5 billion in outstanding ship orders depended on CMA CGM getting the approval of a majority of the bondholders by today, according to the Dec. 16 notice.
The Marseille-based company had warned investors in its euro- and dollar-denominated bonds due 2012 and 2013 that without their agreement, the shipping operator might have to seek bankruptcy protection. The company still needs court approval to raise new financing that would be senior to existing debt.
CMA CGM is seeking to restructure $5.6 billion of borrowing and raise new money, according to a Dec. 16 notice to bondholders. The company is in breach of conditions on most of its debt after suffering from a slump in world trade amid the deepest financial crisis since the 1930s.
The so-called consent solicitation concerned the company’s 293.3 million euros ($418 million) of outstanding 5.5 percent bonds due May 2012 and its remaining $149.8 million of 7.25 percent notes maturing in February 2013, according to data compiled by Bloomberg.
A new credit line and plans to refinance $4.5 billion in outstanding ship orders depended on CMA CGM getting the approval of a majority of the bondholders by today, according to the Dec. 16 notice.