Tuesday, September 29, 2009

Hapag Ready To Receive State Aid

Troubled German Shipping Line Gets a Nod From Government
Shipping News Feature

GERMANY – Despite the fact that the matter will not be discussed until a formal meeting of the German State Budget Committee tomorrow (Wednesday), it looks as though Hapag-Lloyd will receive the €1.2 billion state guaranteed loan it claims to need to ensure its survival.

Hapag, globally the fifth biggest container carrier, have publicly stated that their money supply runs out in November unless they receive a major bail out from the Government. They expect to post annual losses of circa $900 million. Recent developments in the company’s affairs can be seen in our stories of 29th July and 12th and 13th August.

Yesterday saw a nod and a wink from the German ministry in the form of a statement on the case which broadly hinted that the matter would be passed provided the company made cuts over the next three years and the owner contributed a sum of €1.9 million to stabilise the company’s affairs. The consortium who own the firm, principally TUI AG and the Albert Ballin investment group, are widely expected to come up with the money required in some form.