Wednesday, August 19, 2009

Eimskip saves itself for now

Ever since the financial crisis in Iceland, Eimskip (the Icelandic shipping company founded in 1914) has been trying to stay afloat.

They sold off some of their business in cold storage, some ships, and now they have basically made a deal with their creditors to keep the business running, but the creditors are now, the owners.

• The new business will be owned by the financial creditors of Eimskip which includes The Yucaipa Companies (“Yucaipa”), a US private equity investor as a minority shareholder
• Eimskip sells 49% of Versacold Atlas and gives an option for the remaining 51% to Yucaipa.
• Eimskip sells three reefer vessels in Norway

From Eimskip
Motion for composition approved by all creditors

-Preserving the company´s operations and safeguarding 1,500 jobs

A meeting of the creditors of Hf. Eimskipafelag Islands (Eimskip) was held today, for the purpose of voting on the Group’s composition proposal.

100% of Eimskip’s unsecured creditors voted in favour of the composition proposal which was therefore approved.

So, who knows what will be the future for Eimskip. Hopefully they will offer their owners enough of a return to keep running as they are.

However, I suspect eventually they will be sold off to some other larger ocean carrier. Perhaps someone specializing in refrigerated transport.

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