Janet Porter - Friday 31 July 2009
GLOBAL Ship Lease, the containership owner in which CMA CGM has a sizeable interest, has obtained a further loan waiver from its banks while the two sides discuss amendments to its $800m credit facility.
The existing waiver expires today, but New York listed GSL said it had agreed with its lenders to extend its waiver for loan-to-value tests until the end of August. In the meantime, dividend payments remain suspended.
At issue are ship prices, with bankers concerned about the decline in charter free market values of containerships.
The company had initially been required to submit vessel valuations in April and previously received a waiver from loan-to-value tests until the end of July.
OK, that doesn't bother me too much.
However, when I got down to this comment in the article, I started get that funny feeling.
GSL currently owns 16 vessels and has contracted to purchase an additional three ships. That includes the CMA CGM Berlioz, to be bought from the French line for $82m in September, contingent on financing.
Oh, that's just great. Like something DryShips would do. Sell a ship from CMA CGM to Global Ship Lease, probably for a price much higher than current market value.
I am just guessing. I don't know for sure, but if the price was fixed even 6 months ago, it's more than it's worth today.
And, they have contracts for a couple of more ships, to be chartered out to Zim??!!
The company also has contracts in place to buy two newbuildings from German interests for approximately $77m each, which are scheduled to be delivered in the fourth quarter of 2010 with charters to Zim.
Zim isn't going to need any more ships. They are having financial troubles of their own.