Creditors Back Eimskip

All Eimskip’s unsecured creditors have now voted in favour of the composition proposal, which was therefore approved. Eimskip states that it will “preserve the company’s operations and safeguard 1,500 jobs”. The next step for the company is to submit a written petition for confirmation of the composition agreement to the district court judge next week. If the proposal for reconstruction is accepted, the total group obligations in interest bearing debts will be reduced from around EUR 1.6 billion to around EUR 100 million in the new business.

In July, the struggling Icelandic shipping company Eimskip launched a financial re-organisation plan. The plan proposed to create a new and strong shipping and logistics business and to leave the cold storage business. The new business will be owned by the financial creditors of Eimskip; the Icelandic bank Landsbanki is the major secured lender and will own 45 per cent of the new company and Los Angeles investment fund Yucaipa will take a 32 per cent stake, the remaining 23 per cent of new Eimskip will be owned by other unsecured financial creditors, representing more than 50 different creditors. Yucaipa has bought a 49 per cent stake in Eimskip-controlled Versacold Atlas and has an option to buy the remaining 51 per cent of Versacold. Eimskip has sold three reefer vessels in Norway to Atlantica Shipping and reduced indebtedness by EUR 30 million (source:shipgaz.com).