Sunday, May 31, 2009

German Ship Owners to Rescue CSAV

A group of German charter container ship-owners agreed to a $710 million rescue for CSAV, the financially troubled Chilean ocean carrier.

The 20-odd owners which have ships on charter to CSAV agreed to a phased capital injection for the world's 16th largest carrier after nearly two months of negotiations in Hamburg. CSAV said an initial $130 million cash infusion is already underway "and we expect to conclude this first capital increase in June."A second capital increase of $220 million will take place later, followed by a final installment of $360 million.The German ship-owners "have committed their participation to guarantee a 100 percent subscription of a third capital increase," CSAV chief executive Juan Antonio Alvarez said in a statement.Alvarez said he expects other ship owners to co-operate with CSAV's financial restructuring but this "will be dealt [with] separately."Vancouver-based Seaspan has ordered four 4,250 TEUs ships due to be chartered to CSAV for six years.CSAV embarked on an ambitious expansion program over recent years, including the acquisition of Norasia, a carrier on the Asia-Europe route. It also took over a contract from German owner Peter Dohle for four 12,600 TEUs vessels under construction in South Korea for a reported $640 million. It has agreed to charter four similar sized vessels.

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