Wednesday, July 8, 2009

Hapag-Lloyd in trouble

Yesterday it was reported the shareholders of Hapag-Lloyd met, and agreed to help the container line.

That's not exactly correct, because Mr. Kuehne did not attend.

Today it's reported they need about 1.4 BILLION dollars to survive.

That's a nice chunk of change.

I'll bet Mr. Kuehne is wishing he had done something else with his money, rather than buying part of Hapag-Lloyd.

Patrick Hagen, Cologne - Wednesday 8 July 2009
HAPAG-Lloyd’s shareholders have agreed to help the stricken container line.

At a meeting held today in Hamburg, the members of the Albert Ballin consortium and tourism group Tui decided unanimously that they will give financial aid to Hapag-Lloyd.

Tui’s chief executive Michael Frenzel, chief financial officer Rainer Feuerhake and controlling chief Horst Baier were at the meeting. Neither Klaus-Michael Kühne nor his deputy Karl Gernandt attended.

This was seen as an affront by some of the participants, who were unhappy with Mr Kühne’s public comments on the financial situation at Hapag-Lloyd.

click here for link to Lloyd's List July 8 article.

And from Lloyd's List July 9
GERMANY’s largest container line Hapag-Lloyd needs fresh capital of more than €1bn ($1.4bn)

The actual amount will depend on market conditions and could be as much as €1.8bn in a worst possible case scenario, sources said.

click here for link

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