But, I feel a bit bad about doing so. It's like working in a hospital, and giving up on a patient.
Sometimes they surprise you.
CSAV is trying to raise more cash through a stock offering. Their major shareholder will have to throw in some more money to make this happen.
From Lloyd's List
CSAV seeks extra $300m via new offering
Rainbow Nelson - Thursday 30 July 2009
CSAV, the Chilean shipping group battling to steer a course through the hazards of the container market, has told investors that it will seek to raise another $300m through a new equity offering.
Shareholders have been invited to an emergency general meeting in Valparaiso to approve the fund-raising initiative on August 18.
The second of three equity offerings planned by the group is higher than original designs to raise $220m, reflecting the failure of the group to raise $400m from shipowners with vessels on hire to the Chilean group.
In April, CSAV released plans to raise $750m from the capital markets and by offering shares to shipowners controlling most of the company’s 99-strong box fleet.
The funds are needed to cover first half losses of more than $400m, as the line has suffered at the hands of downturn in box trades.
A group of shipowners owning 78 vessels have signed up to take a $350m stake in the company following the completion of two equity placements on the Chilean stock exchange.
CSAV raised $145m from the first offering in June ($15m more than first planned), with investors such as the Claro Group injecting $68.9m through its holding company, Maritima de Inversiones.
If shareholders approve the second offering, it will be implemented in September.
With a 46% stake in the group, the Claro Group is likely to have to dig deep once again to ensure the success of any second offering.
It has said it wants to maintain its dominant holding. To do so it would need to inject another $138m into the group.
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