CSAV said today that tramp tonnage owners have guaranteed a 100% subscription of a capital increase of $360M. They will grant the Chilean carrier a reduction of charter rates by about one third for a period of two years, from April of this year, and receive the stock in a debt-equity swap late this year or early next year, sources close to the negotiations told Fairplay.
German owners, whose commitment is regarded as pivotal for the survival of the company, may then jointly hold 17-20% in CSAV. They would then constitute the second largest investor consortium in the group.
The exact size of the shareholding will depend on share price developments and the success of two preceding capital increases of $130M and $220M, respectively, over the coming months.
German owners agreed to buy the CSAV shares at a considerable premium to the current price. But many of them still hope to break even on the rate reductions they have agreed to if CSAV gets over the worst and its share price recovers, Fairplay was told.
There is no mention if the vessels on order with Samsung will be delivered, or if they can be cancelled or delayed.
I suspect in a year or so, the ship owners will be owning a bit more of CSAV to keep them afloat.
I could be wrong.
If things really do turn around late this year they might be able to survive.