Monday, September 28, 2009

Hapag-Lloyd on track for government monies

Looks like things are falling in place for Hapag-Lloyd to get some money from the government.

They sure will need it.

From The Wall Street Journal (who picked this up from Dow Jones)

FRANKFURT (Dow Jones)--The German government's steering committee Monday signaled there will likely be a positive vote on state-backed guarantees for struggling shipping company Hapag-Lloyd AG (GD-HPL) of a total of EUR1.2 billion.

The German budget committee is still set to discuss the matter Wednesday.

Hapag-Lloyd is set to get 90% of the guarantees from the government's special Germany fund, the German economics ministry said in a statement.

The German federal and Hamburg governments will each provide half of the guarantees.

Hapag-Lloyd, which is 43.3% owned by TUI AG (TUI1.XE) and 56.7% by consortium Albert Ballin GmbH & Co. KG, applied for the state-backed guarantees in August.

The company's owners Monday declined to comment on the subject in detail.

The state guarantees must be examined by the European Union Commission, which said two weeks ago it is "in informal contact" with Germany about the issue.

-By Frankfurt Bureau, Dow Jones Newswires; +49 69 29725 500;

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