Chilean container line CSAV has reached agreement with German shipowners to ensure its survival with a programme to inject $710m in capital.
The programme, which has been agreed with German shipowners, will see $710m in capital injected into the company in three tranches.
An initial capital injection of $130m is already underway.
“Existing shareholders have expressed their willingness and commitment to subscribe and we expect to successfully conclude this first capital increase in June,” said chief executive Juan Antonio Alvarez.
Later, a second capital increase of $220m will take place, and finally a $360m capital injection, which Mr Alvarez said shipowners in Hamburg had already 100% committed to.
Shipowners, lawyers and the line have been in negotiations since early April, when CSAV held a meeting in Hamburg at which owners were asked to accept reduced charter payments in exchange for shares in the company.
The company also requires the agreement of other shipowners worldwide but said it expects them to cooperate.
“It has been a very challenging task during the present economic environment to put in place the described programme, particularly considering the multiple parties and interests involved,” said Mr Alvarez.
CSAV, ranked number 18 in the world in terms of its containership fleet, has 55 ships with combined capacity of 148,000 teu on charter, according to ci-online.
The programme, which has been agreed with German shipowners, will see $710m in capital injected into the company in three tranches.
An initial capital injection of $130m is already underway.
“Existing shareholders have expressed their willingness and commitment to subscribe and we expect to successfully conclude this first capital increase in June,” said chief executive Juan Antonio Alvarez.
Later, a second capital increase of $220m will take place, and finally a $360m capital injection, which Mr Alvarez said shipowners in Hamburg had already 100% committed to.
Shipowners, lawyers and the line have been in negotiations since early April, when CSAV held a meeting in Hamburg at which owners were asked to accept reduced charter payments in exchange for shares in the company.
The company also requires the agreement of other shipowners worldwide but said it expects them to cooperate.
“It has been a very challenging task during the present economic environment to put in place the described programme, particularly considering the multiple parties and interests involved,” said Mr Alvarez.
CSAV, ranked number 18 in the world in terms of its containership fleet, has 55 ships with combined capacity of 148,000 teu on charter, according to ci-online.