Eimskip has an unsustainable debt burden resulting from failed acquisitions, significant guarantee claims and the downturn in trading resulting from the economic crisis in Iceland and around the world. Since October 2008, the company has been working with foreign and domestic advisors to develop a financial re-organisation proposal.
Eimskip now proposes to sell 49% of Versacold Atlas and give an option for the remaining 51% to Yucaipa - the parent company of Americold.
Yucaipa said that Americold and Versacold will continue to operate fully independently and compete in the marketplace, with both companies retaining their existing management teams and board of directors.
Eimskip has also sold three reefer vessels in Norway to Atlantica Shipping, reducing its indebtedness by €30 million.
In order to safeguard the Icelandic business, certain operations will be transferred to Eimskip Island, a wholly owned subsidiary of Eimskip. This should ensure that daily operations in Iceland, including the payment of trade suppliers, will not be disrupted.
The new business (New Eimskip) will be entirely owned by Eimskip's financial creditors:
- Landsbanki - as a secured lender and the majority holder of the unsecured claims will own 45% of New Eimskip
- Yucaipa - as secured lender will surrender existing secured debt and invest €15 million of new capital into New Eimskip in order to acquire 32% of the new company
- The remaining 23% of New Eimskip will be owned by the other unsecured financial creditors, representing more than fifty different creditors
- Eimskip's existing shareholders will not participate in New Eimskip
