Sea Containers to Quit Ferry Business

Monday, March 27, 2006
Sea Containers Ltd. said it would withdraw from the ferry business, and it now expects to take $500 million in charges for the fourth quarter, sending its shares down 9 percent. The company, which runs the SeaStreak commuter service linking New Jersey with New York City, said the charges would reduce its net worth by $475 million, making it unable to comply with certain bank borrowing agreements. The passenger transport and marine container leasing company said in a statement that its board had decided to exit the ferry business, resulting in a noncash impairment charge of $415 million on a pretax basis for the fourth quarter. The company had previously estimated that it would take a fourth-quarter charge of $112 million. Sea Containers will also take a noncash pretax charge of $85 million for losses incurred during the sale of containers, impairment charges and a goodwill write-down. The company said it was holding talks with lenders on obtaining waivers or amendments to loan agreements and would restate its earnings for all four quarters of 2005 and delay filing its annual reports with the U.S. Securities and Exchange Commission until April to allow time to finalize bank negotiations and outstanding accounting issues. (Source: Reuters)
Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Teekay Petrojarl Contracts Damen for FPSO Upgrade

Damen Shiprepair Rotterdam (DSR), part of Damen Shiprepair & Conversion (DSC), has been awarded an EPC contract by Petrojarl I LLC for the upgrade of its FPSO Petrojarl I.

DNV GL Targets Safer Approach to Subsea Lifting

The completion of a joint industry project (JIP) to improve existing standards and regulations around subsea lifting operations has resulted in a new recommended practice (RP).

Polarcus Awarded 3D Project Off West Africa

Polarcus Limited has signed a letter of intent with Perenco Oil & Gas Gabon S.A. for a 3D marine seismic acquisition project offshore West Africa.   The project,

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1145 sec (9 req/sec)