Hapag-Lloyd said to qualify for state loan guarantees

AUDITORS from PriceWaterhouseCoopers say troubled Hapag Lloyd is qualified for loan guarantees from the German government, according to Reuters.

Major share holder, the German travel giant TUI, the previous Hapag owner, as well as its new owner, the Albert Ballin consortium, have sought government approval for US$1.8 billion in loan guarantees to save ailing shipping line, the world's sixth largest.

PriceWaterhouseCoopers have said Hapag-Lloyd appears to make the grade in fulfilling conditions to obtain state aid, said Reuters, ahead of a September 18 decision from a German government committee deciding the issue.

The City of Hamburg, with full provincial status, agreed to an additional $1.32 billion cash injection for Hapag-Lloyd, $320 million more than previously committed by Hapag shareholders to boost qualifications for the loan guarantee.

(Source: www.schednet.com)