Financially troubled CMA CGM returned to profitability on its operations between Asia and North Europe in October and expects overall operations to show operating profits in November and December.
The ocean carrier, the third-largest container line in the world, said in its internal company magazine released this month it is seeing “significant improvement in operating results.”
CMA CGM is looking for the improvement as it seeks approval from bondholders for a plan to raise more debt as the company tries to restructure its way out of a deep financial hole.
The carrier this month overhauled its leadership structure as founder Jacques Saade, in a deal with lenders holding some $5.6 billion in debt, said he would cede day-to-day management of the business and create a corporate board to run the company.
The Marseilles-based liner company needs bondholders to agree to change terms of senior bonds to attract fresh capital and give CMA CGM time to negotiate cancellations or deferrals of ship orders.
But the carrier also says its operating business has improved as a mild uptick in peak season shipping, cutbacks in capacity across maritime markets and higher rates since pricing reached historic lows early in 2009.
“The Asia-North Europe lines, which account for nearly a quarter of the group’s shipping volume, returned to profitability beginning in October 2009,” said Nicolas Sartini, senior vice president for Asia Europe Lines, quoted in the CMA CGM Group publication. “Overall, CMA CGM’s other lines should be close to break-even by the end of 2009.”
The ocean carrier, the third-largest container line in the world, said in its internal company magazine released this month it is seeing “significant improvement in operating results.”
CMA CGM is looking for the improvement as it seeks approval from bondholders for a plan to raise more debt as the company tries to restructure its way out of a deep financial hole.
The carrier this month overhauled its leadership structure as founder Jacques Saade, in a deal with lenders holding some $5.6 billion in debt, said he would cede day-to-day management of the business and create a corporate board to run the company.
The Marseilles-based liner company needs bondholders to agree to change terms of senior bonds to attract fresh capital and give CMA CGM time to negotiate cancellations or deferrals of ship orders.
But the carrier also says its operating business has improved as a mild uptick in peak season shipping, cutbacks in capacity across maritime markets and higher rates since pricing reached historic lows early in 2009.
“The Asia-North Europe lines, which account for nearly a quarter of the group’s shipping volume, returned to profitability beginning in October 2009,” said Nicolas Sartini, senior vice president for Asia Europe Lines, quoted in the CMA CGM Group publication. “Overall, CMA CGM’s other lines should be close to break-even by the end of 2009.”