TUI to provide a capital injection

TUI group has published details of the rescue package fixed for Germany's largest shipping company, Hapag-Lloyd. To meet the conditions of state aid of EUR 1.2bn (USD 1.77bn), Hapag-Lloyd's owners Albert Ballin consortium and TUI are to provide a capital injection of EUR 285mn. TUI will contribute EUR 124mn of the total and convert loans worth EUR 915mn into hybrid capital and loans worth EUR 153mn into equity. TUI will also pardon annual interest payments worth about EUR 80mn.

Albert Ballin take over a loan of EUR 200mn and convert it into equity, which means that the shareholdings of both owners remain unchanged.

Hapag-Lloyd is faced with a loss of EUR 900mn in 2009, Logistics Finland reports.

(Source: Transport Weekly)