Shares sink for indebted shipping company CSAV
Chilean freight company Compañía Sudamericana de Vapores (CSAV) is estimated to have recorded losses of up to US$50 million in the first three months of 2011, while it still owes Korean company Samsung around US$60 million by June, reported magazine Qué Pasa.
The company has been struggling to revive itself from the critical financial situation, combined with the surprise resignation of president Jaime Claro Valdés earlier this year, who the story claimed had been involved in 'underground struggles' with his brother's widow Maria Luisa Vial.
In Valdés' final board meeting he explained the company was in a 'complex situation' and outlined his intention to leave, before his cousin Arturo Claro Fernandez took over as a acting president. The story said general manager Juan Antonio Álvarez had been recognized for his role in salvaging the company's existence.
The business has decided to raise US$300 million in capital through a sale to a third party in order to pay down its debts, the story reported, but as one of the world's top 10 largest transport companies CSAV's value has dropped significantly in 2011.
Since the opening of trade this year the business has lost more than US$1 billion in value on the Santiago Bolsa, representing nearly half its value. On friday alone the business lost around US$150 million in value on the sharemarket, with a closing market capitalisation of US$1.39 billion (663.56 billion Chilean pesos).