Hapag-Lloyd shareholders to bolster line
German liner carrier Hapag-Lloyd looks set to receive a cash infusion from its investors, according to statement from the carrier and reports out of Germany.
The line, owned by a consortium of Hamburg-based investors and owned by the tourism group TUI, did not disclose details of the financial package. Shareholders of the line will return later this month with suggestions on how such a package should be structured.
'Hapag-Lloyd AG's shareholders declared that they welcome and support the initiatives launched by the company to secure its future,' the carrier said in a statement. TUI and the Albert Ballin consortium 'will submit proposals for capital and financing measures to the relevant bodies to adopt resolutions in order to be able to secure the company's long-term future.'
The line lost $302 million in the first quarter and is projected by German banks to lose more than $500 million for the year. TUI last year sold a 57 percent share of the line to the consortium.