Cammell Laird Works To Save Costa Contract
Cammell Laird Holdings Plc is trying to hammer out a new agreement this week to save a nearly $76 million (51 million pound) cruise liner contract and protect hundreds of jobs, the Daily Telegraph reported. Cammell was also looking for a breakthrough later this week on talks about bank financing for a 350 million pound order for two cruise liners from Luxus (U.K.), a new start-up company, the paper said. It said senior executives headed by Chief Executive John Stafford were studying fresh proposals on the cruise liner contract. They were put forward by Costa Crociere, the Italian cruise line owned by U.S. Carnival Corp., after two and a half days of talks in Genoa last week, the paper said.
Is Cammell Laird In Trouble?
British shipmaker and repairer Cammell Laird has been struck a heavy blow by the termination of a key cruise ship contract, which it said on Monday would have a "significant impact" on year results. Since the dispute which has led to this result, with Costa Crociere regarding a high-value cruise ship conversion, began in November, Cammell Laird’s shares have fallen dramatically from a year high of 147 pence to the current level of 13 ¾ pence. Cammell Laird posted a first-half pre-tax loss of 3.5 million pounds ($5.11 million) on turnover of 52.7 million -- down from 61.7 million -- and said it had been a difficult time for the company, primarily due to the Costa Classica dispute.
Cammell Laird $500M Contract In Jeopardy
Cammell Laird's $500 million contract with U.S. firm Luxus could fail unless loan guarantees are received from the British government by the end of February. "It's urgent. I'd like to think it (loan guarantee approval) was certainly this month," Juan Kelly said. Kelly said he had written to British Trade and Industry Secretary Stephen Byers to urge the speedy approval of loan guarantees for Luxus, which has ordered two luxury liners from Cammell Laird. Without the guarantees, Luxus, which is a start-up company, may not get bank loans to fund the orders, sources at Cammell Laird said recently. The guarantees could cover some 60 percent of the value of the contract.
