Thursday, April 30, 2009

Samsung won't let CSAV renegotiate ship purchase

Samsung Heavy Industries, which is a shipbuilder, refuses to let CSAV cancel some orders for new ships they placed 2 years ago.

CSAV is in pretty severe financial trouble. They were going to get some concessions from German shipowners with whom they have charters, but now that Samsung is not budging, who knows.

You would think Samsung would look at what happened today with Chrysler. They filed for bankruptcy protection because some of the hedge funds who held their bonds wanted too much money.

I presume Chile (where CSAV is based) offers a company bankruptcy reorganization protection, as we do in the U.S.

If so, I think that is the only hope CSAV has to get out of this mess. Unless someone wants to buy them, which I doubt.

Here's more info from Lloyds List
CSAV in crisis as Samsung rebuffs rescue efforts

Patrick Hagen and Janet Porter - Thursday 30 April 2009

THE survival of embattled Chilean shipping group CSAV could rest with South Korean shipbuilder Samsung Heavy Industries after German owners attending crisis talks in Hamburg in April attached conditions to a rescue plan.

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