Tuesday, August 25, 2009

Update Hapag-Lloyd cash injection

Bloomberg News has an article today regarding the cash infusion into Hapag-Lloyd.
They state the German government will decide by the end of September whether to provide a bail out.
News earlier this week said by mid-Sept. So, I don't know if the targeted date has been delayed, or is someone has put in a "fudge factor".

From Bloomberg

Aug. 25 (Bloomberg) -- German shipping line Hapag-Lloyd AG may receive a 923 million-euro ($1.32 billion) cash injection from owners including the city of Hamburg as the company seeks to bolster its chances of receiving a federal loan guarantee.

The capital increase approved today by the city’s government is more than the 750 million euros that had been previously pledged by shareholders and should fulfil requirements for receiving the 1.2 billion-euro government guarantee, Hamburg’s finance department said in a statement.

Chancellor Angela Merkel’s government will decide by the end of next month whether to grant the container line the guarantee its owners say is needed to boost liquidity as the global economic slump hurts world trade. TUI AG, which owns 43 percent of Hamburg-based Hapag, said Aug. 13 that the company needed total financing of at least 1.95 billion euros.

click here for link

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