Friday, December 18, 2009

CMA CGM gets credit line

The bankers for CMA CGM have extended a credit line so operations will not be disrupted, as talks with creditors continue.

Apparently, part of the deal was for the founder and CEO Jacques Saadé, to step down, which he has now done, following two missed deadlines for refinancing agreements.

The French Government said they would assist CMA CGM if necessary, but only if they came to terms with their creditors for refinancing.

The creditors had said part of the requirement for refinancing was for Mr. Saadé to step down. He had resisted doing so, which is certainly understandable as he founded the company.

This paves the way for new investors, which are believed to be

Louis Dreyfus Armateurs, a French bulk ship owner, French private equity group Butler Capital Partners, and Los Angeles-based Apollo Management, the owner of CEVA Logistics of the Netherlands.



click here for article from JOC

1 comment:

Anonymous said...

Everything is falling into place now for CMA CGM. In addition to continued (slowish) recovery in world trade, two key remaining benchmarks must be cleared:

1) Senior bondholders have a vote by December 22 in which they have to accept a second place rung in the capital structure behind the banks (seems reasonable, but you never know), and

2) Korean shipyards will be asked to make meaningful concessions regarding the ships on order.

Much remains to be seen.