The cash infusion is meant to allow the French container line to meet short-term debt payments on vessels. It suffered through a torrid first three quarters of 2009 due to poor revenue on its key trades, but said its operations had returned to profitability by the end of the year thanks to better demand and rate increases that stuck.
The $500 million line from CMA CGM's creditors was contingent upon founder Jacques Saad' stepping down as chief executive, which he agreed to do in December. Saad' has remained as chairman.
'The consortium of banks of CMA CGM today signed an agreement to release $80 million in financing to the group,' CMA CGM said in a statement. 'This financing is part of the overall restructuring plan whose negotiations are proceeding normally and which calls in particular for the grant of a $500 million cash facility. This payment is made at a time when the group's operations are continuing to show strong improvement month after month.'
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now