News Line

The debt of CMA-CGM in the court and

July 26, 2010

The shipping company CMA-CGM aims to save time. The Marseilles group had, in theory, until today, Monday, to find a solution to its financial difficulties. Following discussions this weekend with potential investors, the group could receive another suspension of the Commercial Court of Marseille to renegotiate its debt by $ 6.1 billion.

In any case, the group argues in this direction. This setting effect on the recovery of its activity since the beginning of the year to be in a better position to negotiate with potential investors. The traffic grew by nearly 21% since the beginning of the year, turnover increased 29% in the first quarter of 2010 and the gross operating surplus amounted to 380 million.

Multiplication of contenders

And after this improvement, offers of participation in the capital have increased.The sovereign wealth fund Qatar Holding, excluded from discussions on July 12 last, is returned to the race, supported by the French sovereign fund FSI understands Les Echos. The sales will fund Butler Capital Partners may also participate in the round.

Debt Record

The owner, a leading private employers in the Marseille region with 16,500 employees over 385 ships, is buried under record debt, exacerbated by the crisis. The group has in fact faced with a maturity of outstanding bank 300 million euros. It must also meet before the end of the year, a bill of 390 million for twelve ships. CMA-CGM has no choice, therefore, it must open its capital to new investors to pay its debts.

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