German ship owners agree on rescue of CSAV

CSAV announced that it has reached an agreement with shipowners coordinated in Hamburg for the financial strengthening of CSAV. The plan contemplates a program of capital increases for $710 million. It also expects other shipowners to cooperate but that will be dealt separately.

The program considers an initial capital increase for $130 million that is underway. Existing shareholders have expressed their willingness and commitment to subscribe and CSAV expects to successfully conclude this first capital increase in June.

Afterwards, a second capital increase for $220 million will take place and shipowners coordinated in Hamburg have committed their participation to guarantee a 100% subscription of a third capital increase for $360 million.

It has been a very challenging task during the present economic environment to put in place the described program,CSAV Chief Executive Juan Antonio Alvarez said.

CSAV was advised of the plan by northern European investment bank HSH Corporate Finance.