Germany did not accept terms of the rescue of container shipping line Hapag-Lloyd, Germany's Bild newspaper reported without citing sources.
Investors had tried to secure a $1.71 billion loan guarantee from the German government in a package submitted last month. But the government demanded collateral that shareholders couldn’t agree on.
Berlin said Hapag-Lloyd should buy back from its own shareholders, TUI and the Ballin Consortium, a 25.1 percent stake in the Altenwerder container terminal, according to the newspaper. That stake would be collateral for the loan guarantee.
TUI and Ballin's largest shareholder, the city of Hamburg, are willing to meet Berlin's demands, Bild said. However, Ballin's second-largest investor, Klaus-Michael Kuehne, threatened not to participate in the rescue package under those terms.
Investors had tried to secure a $1.71 billion loan guarantee from the German government in a package submitted last month. But the government demanded collateral that shareholders couldn’t agree on.
Berlin said Hapag-Lloyd should buy back from its own shareholders, TUI and the Ballin Consortium, a 25.1 percent stake in the Altenwerder container terminal, according to the newspaper. That stake would be collateral for the loan guarantee.
TUI and Ballin's largest shareholder, the city of Hamburg, are willing to meet Berlin's demands, Bild said. However, Ballin's second-largest investor, Klaus-Michael Kuehne, threatened not to participate in the rescue package under those terms.
