Lines garner funds from shareholders

Container shipping lines have begun turning to shareholders in an effort to raise cash to fund debt repayments, stave off the impending spectre of bankruptcy, or to take advantage of possible investment opportunities. Last week Singapore-based NOL announced that it was planning a rights issue that should raise S$1.4bn (US$974m). In a presentation, it said that half the proceeds of the issue would be used to repay debt, with the remaining half channelled into “investments (if opportunities arise); and/or general corporate and working capital purposes, and/or further repayment of debts”.