The owner Marseille relies on a steering committee charged with finding solutions to the debt of 5 billion dollars. It refers to the first cancellations of orders for ships.
CMA CGM acknowledges financially desperate. One year after the start of the storm that hit the world's shipping, the shipowner in Marseille, the third operator in global container transport, said yesterday in a statement to have heard "on the establishment of a steering committee consisting of banks and financial institutions, French, European and international players including some Asian and South Korean major. The statement said: "This committee is responsible for proposing measures to ensure the financing needs of the group in the short and medium term, strengthen its financial structure and so ensure its sustainable development. Governments, who were informed of this initiative will be regularly kept abreast of developments in this work. In conclusion, he mentions that "the objective of CMA CGM is to reach a comprehensive agreement with the committee by mid-November.
Faced with plummeting volumes and freight rates, that is to say prices charged to customers, the owner is of course not been idle to adapt to new circumstances. Last April, he announced in 2009 and a plan to save 600 million dollars (the currency of reference in the sea), including 400 million from the reduction of the fleet which he does not own. In fact, September 28, CMA CGM were no longer than 361 vessels including 270 leased and 91 owned, against 393 ships by 1 January with 295 charter and 98 owned.
But these measures do not suffice. Like most of its major competitors, CMA CGM, which is advised by JP Morgan can not escape a financial restructuring. How much? Protected by the structure entirely deprived of its shareholders and not issuing accounts once a year, the group chaired by Jacques Saade refuses to show publicly especially its losses since January 1 (probably several hundred million dollars), the state of its cash or its main milestones to come. A source familiar with the matter, however, suggests a debt of 5 billion dollars, largely due to the 51 vessels on order to enter the fleet by 2012.
According to one observer, these ships are ordered the major problem group, because this is very heavy commitments to pay when revenues vanish. Moreover, for the first time yesterday, CMA CGM has admitted in his statement that he was considering cancellations of shipments of ships ordered in addition to negotiations on conventional reports of dates of delivery. This file is going to be particularly difficult because it involves dozens of financial institutions - some people consider 50 to 70 - of many nationalities, including a branch of Korean export credit reputation for rigidity in negotiations.
But other measures are also needed. In the Summer of MEDEF, Jacques Saade had admitted the possibility of disposing of non-strategic assets (real estate, active port). One can also imagine the default of debt. And ultimately arise the question of the capital increase from fatally, if decided by the opening of the capital of CMA CGM, since its owner can not subscribe to only having the best years in reinvested his money in the development of the company. What type of Jacques Saade shareholders will he be ready to share power? This is one of the major challenges of the coming period.
CMA CGM acknowledges financially desperate. One year after the start of the storm that hit the world's shipping, the shipowner in Marseille, the third operator in global container transport, said yesterday in a statement to have heard "on the establishment of a steering committee consisting of banks and financial institutions, French, European and international players including some Asian and South Korean major. The statement said: "This committee is responsible for proposing measures to ensure the financing needs of the group in the short and medium term, strengthen its financial structure and so ensure its sustainable development. Governments, who were informed of this initiative will be regularly kept abreast of developments in this work. In conclusion, he mentions that "the objective of CMA CGM is to reach a comprehensive agreement with the committee by mid-November.
Faced with plummeting volumes and freight rates, that is to say prices charged to customers, the owner is of course not been idle to adapt to new circumstances. Last April, he announced in 2009 and a plan to save 600 million dollars (the currency of reference in the sea), including 400 million from the reduction of the fleet which he does not own. In fact, September 28, CMA CGM were no longer than 361 vessels including 270 leased and 91 owned, against 393 ships by 1 January with 295 charter and 98 owned.
But these measures do not suffice. Like most of its major competitors, CMA CGM, which is advised by JP Morgan can not escape a financial restructuring. How much? Protected by the structure entirely deprived of its shareholders and not issuing accounts once a year, the group chaired by Jacques Saade refuses to show publicly especially its losses since January 1 (probably several hundred million dollars), the state of its cash or its main milestones to come. A source familiar with the matter, however, suggests a debt of 5 billion dollars, largely due to the 51 vessels on order to enter the fleet by 2012.
According to one observer, these ships are ordered the major problem group, because this is very heavy commitments to pay when revenues vanish. Moreover, for the first time yesterday, CMA CGM has admitted in his statement that he was considering cancellations of shipments of ships ordered in addition to negotiations on conventional reports of dates of delivery. This file is going to be particularly difficult because it involves dozens of financial institutions - some people consider 50 to 70 - of many nationalities, including a branch of Korean export credit reputation for rigidity in negotiations.
But other measures are also needed. In the Summer of MEDEF, Jacques Saade had admitted the possibility of disposing of non-strategic assets (real estate, active port). One can also imagine the default of debt. And ultimately arise the question of the capital increase from fatally, if decided by the opening of the capital of CMA CGM, since its owner can not subscribe to only having the best years in reinvested his money in the development of the company. What type of Jacques Saade shareholders will he be ready to share power? This is one of the major challenges of the coming period.
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