May 07, 2010

CMA CGM scrambles to restructure after $1.4 bil loss

CMA CGM, one of the world's largest container shipping lines, is considering a public listing as part of a package of measures to turn the ailing Marseilles-based company round after it lost $1.42bn in 2009.

However, the company, which operates the third-largest container ship fleet, was unable yesterday to announce a badly needed restructuring package, amid disagreements over the Saadé family's continuing control of the company.

CMA CGM has been in discussions with its creditors since September on a potential deal to restructure the line's financial obligations to lenders and shipyards after the worst year in container shipping's history threatened its future.

In December, the company announced a preliminary deal, under which Philippe Soulié, a veteran French businessman, took over in January as chief executive from Jacques Saadé, the 72-year-old founder.

The company has since missed deadlines to finalize an agreement, which it hoped to announce in April.

-Financial Times

For the full story: www.ft.com