CMA CGM Agreement

Tuesday, September 29, 2009

CMA CGM reached agreement on the establishment of a committee comprised of French, European and international banks including certain major financial institutions from Asia and the Republic of Korea. The committee will propose suitable measures to address the Group's short and medium term financing requirements with a view to strengthening CMA CGM's capital structure and, in so doing, ensuring its ongoing development. The French State is aware of this initiative and will be kept regularly updated on the progress made.
 
Since the summer of 2008 the entire World container shipping industry - within which CMA CGM ranks as third largest operator- has experienced severe market conditions. Compared with the second half of 2008, the first half of 2009 saw record decreases in freight rates and shipment volumes on all main shipping lines around the World. The level of activity began to improve again during the third quarter of this year and, so far this recovery is sustained in the fourth quarter. Forecasted load factors and freight rates for the beginning of 2010 suggest a possible continuation of these recent positive trends.
 
CMA CGM will continue with the initiatives started during the course of 2009 including notably with respect to the re-negociation and in some cases the cancellation of certain ship deliveries.
 
Regular working sessions of the committee are already scheduled. CMA CGM is aiming to reach an all-encompassing agreement with the help of the committee by the middle of November.

Categories: Legal

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