Wednesday, December 2, 2009

French Government might help CMA CGM

From The Journal of Commerce

The French government said Dec. 2 it is willing to help CMA CGM, but the troubled ocean container carrier must first sign a debt restructuring deal with its creditors.

The government "does not exclude intervention" in CMA CGM "but it must first resolve its debt problem with the banks," said Transport Secretary Dominique Bussereau.

"We would intervene in a second phase," Bussereau said without giving details.

The government's statement of support for CMA CGM came as the carrier entered a third month of talks with its 63 European and Asian banks over restructuring its $5.6 billion debt, much of which is linked to orders for 60 containerships.

click here for link

CMA CGM said they expect to have the restructuring with the banks accomplished by mid-Dec, a month later than anticipated. I will be surprised if they make that date.
Let's give them until Dec. 18, (the Friday before Christmas week) which is 16 days from now.

I'll keep you posted if I see anything.

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