Hapag-Lloyd owners agree on more funding

The owners of Hapag-Lloyd, the cash-strapped German shipping line in which TUI AG is the biggest shareholder, have reached an agreement on additional funding, according to Bloomberg news, citing a person familiar with the situation.

Earlier, TUI said HSH Nordbank AG, representing Hapag lenders, might file for government loan guarantees worth $1.71 billion as early as Aug. 13.

TUI, which owns 43 percent of Hapag, said Thursday that the container line needs financing of $2.78 billion, $286 million more than previously expected. In addition to state-guaranteed bank loans, shareholders would contribute $1.07 billion, the Hanover, Germany-based company said.

The travel company reported its second-quarter loss widened to $767 million from $81 million a year earlier, hurt by loans given to Hapag. A risk evaluation of the loans led to $530 million of interest costs.

TUI plays the “role of a bank” for Hapag, TUI Chief Financial Officer Rainer Feuerhake said on a conference call. TUI expects a positive impact from the evaluation as soon as the global container business recovers, he said.

Share Gain TUI, which sold about 57 percent of Hapag to a group of investors in March and retains the biggest stake in the company, last month agreed to help Hapag by contributing $307 million to the purchase of a container terminal.

Source: http://www.joc.com