CSAV reveals details of ‘rescue package’

When details of a Hamburg shipowner’s rescue package aimed at financially strengthening the ailing Chilean shipping line, Compañía Sudamericana de Vapores (CSAV), hit the press, FTW communicated with line CEO Juan Antonio Alvarez. He expressed the line’s pleasure with the plan, devised with the advice of HSH Corporate Finance, which details a programme of capital increases totalling US$710-million (over R5.6-billion). “We also expect other shipowners to cooperate,” he said, “but they will be dealt with separately.” The initial capital increase for just over R1-bn is under way, with existing shareholders having expressed their willingness and commitment to subscribe. “We expect to successfully conclude this first capital increase this month,” said Alvarez. Afterwards, a second capital increase for R1.76-bn will take place and the shipowners in Hamburg have committed their participation to guarantee a 100% subscription of a third capital increase for R2.88-bn. “It is often said that severe difficulties either kill you or strengthen you,” Alvarez told FTW. “CSAV has experienced difficulties and after this process the latter will apply. “We are still far from achieving our goal, but we have taken a gigantic step forward to get closer to it.”