But the ultimate bargain should last several months

The Christmas Truce is expected for CMA CGM and its 63 creditor banks. Together again yesterday afternoon at Bercy under the aegis of the Ministry of the economy to try to advance on the financial restructuring of the Marseille owner participants appeared to be struggling to reach an agreement. Evidenced by the fact that, at the time where we in press, no information is had filtered on the part of the third world shipowner in container transport. He was however not excluded in the evening that a release of CMA CGM was published today.

According to our information, the negotiation of yesterday had intended to finalize the first stage of restructuring, namely the change of governance of the family company chaired by Jacques Saadé. A change demanded by the banks in exchange for the granting of the order of $ 500 million credit line (the green ticket is the currency of account in the maritime) enabling CMA CGM to its deadlines and avoid requesting a backup procedure at the tribunal de commerce.

New names are circulating

In this context, Jacques Saadé would have accepted that the group, currently composed of a Board of Directors (which he chairs) and a supervisory board, adopts the structure of Board of Directors, which he would be President. A Director-General to the expanded and from the outside powers would be appointed. After the evocation by the press of Denis Ranque (former pattern of Thales) for the position - but he refused-, new names circulated yesterday, impossible for the time to check. Unverifiable information.

Also on the agenda was the composition of the future Board of Directors which, according to some sources, Denis Ranque may be part.

The closure of this first step would be necessary to address the following folder: the finalization of the negotiations with the Korean shipyards that the shipowner asked to delay or cancel delivery of 49 ships on order, and the entry in the running of the strategic investment Fund (ISP). According to some, it is requested to the ISP of contre-garantir bank credits attached to these commands of ships.

A process very complex, said of "loan to value", is indeed the banker is guaranteed on the value of the ship, with a covenant to verify on fixed dates that the amount of capital outstanding remains less than or equal to the price of the boat on the market. However, with the maritime crisis and overcapacity of transport resulting prices for container ships have sharply, so the lender banker is more covered. It is then entitled to seize the ship.

But it is not clear that the ISP agreed to take this counter-guarantee for did not arrive at this end. According to a close source of the ISP, the latter indeed hear only a role of investor in the capital of CMA CGM, to complete the restructuring. In which case it should be that another organization (OSEO) contre-garantisse the "loan to value".

Strengthen the own funds

Once completed these steps, it will remain to the own funds of CMA CGM, Jacques Saadé was recently estimated capital requirements between 300 and 400 million dollars. But the ultimate bargain should last several months. Some prospective investors are indeed waiting to see if the savings measures already taken by the group, combined with the immediate breath of oxygen, will help to redress durably business account of the global environment and the capacity or not, shipowners to raise their prices.

A large part of the answer lies in the evolution next the price paid by industry to CMA CGM and its competitors to transport their goods.