Chiquita Shipping Continues Despite Bankruptcy
Chiquita Brands International, Inc. (NYSE:CQB) announced that it does not expect the bankruptcy filing by Eastwind Maritime Inc. and certain of its affiliates to adversely affect service to Chiquita's customers and the delivery of its bananas and other fresh fruit products. All of the 12 oceangoing ships that the company sold in 2007 remain under long-term charter to Chiquita, including the four ships sold to Eastwind. "We are taking appropriate steps to protect Chiquita's interests under these long-term charters," said Waheed Zaman, senior vice president, product supply organization.
Chiquita Completes Sale of Ships
Chiquita Brands International, Inc. has completed the previously announced sale of its 12 refrigerated cargo vessels for $227m. The cash proceeds from the transaction are being used to repay approximately $170m of debt, and the remainder will be retained for general corporate purposes, including growth investments or future debt repayments. The ships have been chartered back from an alliance formed by Eastwind Maritime Inc. and NYKLauritzenCool AB. The parties also entered a long-term strategic agreement in which the alliance will serve as Chiquita's preferred supplier in ocean shipping to and from Europe and North America.
Chiquita Sells 12 Ships for $227m
Banana producer Chiquita Brands International will sell 12 refrigerated cargo ships for $227mto an alliance of Eastwind Maritime Inc. and NYKLauritzenCool AB. The deal will allow Chiquita to lease back 11 of the ships for at least 7 years, with an option for 5 more years and the other ship for 3 years with an option for 2 more years. The sale includes eight reefer ships and four container ships. Source: Reuters
