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20 March 2019 The on-line newspaper devoted to the world of transports 18:56 GMT+1



April 29, 2011

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Original news
Horizon Lines saved by the intervention of the U.S. Justice Department

The fine for violation of antitrust rules has been reduced from 45 to 15 million dollars

A substantial reduction of a fine imposed for breaking antitrust rules to allow American Horizon Lines to avoid bankruptcy. So at least maintains the same shipping company announced that a U.S. federal court has upheld a request by the U.S. Department of Justice to reduce the amount of the fine from 45 million to 15 million dollars.

The company owner was fined for illegally implement a cartel agreed freight rates and surcharge for shipping services between the mainland U.S. and Puerto Rico at least in the period between May 2002 and April 2008 and therefore violating the Sherman Act which lays down the $ 100 million fine for companies for this type of infringement.

As a result of the reduction of the penalty to $ 15 million payable in five years without interest and with an initial deposit of one million dollars that has already been paid - said the company - Horizon Lines is no longer in a situation where they can not cope the payment deadline of next May 21 on its convertible bonds. "With any sentence of more than $ 15 million that the company was not able to pay - said Horizon Lines - the company could be declared in default from the holders of convertible bonds."

"We are very grateful - said the managing director and vice president of Horizon Lines, Michael T. Stingy - this action by the Justice Department that also allows the company to proceed with the resolution of class action litigation in Puerto Rico. The reduction of the fine - he added - will preserve the financial flexibility of our company and we are confident that it will facilitate our efforts to secure new long-term financing. "

Horizon Lines recently had suggested the possible use of controlled administration, an announcement was not welcomed by investors (of 30 March 2011). The airline's president and CEO, Stephen H. Fraser, confirmed the difficulties of the company in recent months to meet the needs of suppliers and investors, "the reduction of the penalty - said - should help to give our partners a renewed confidence in the ability of our society to continue to serve our customers and provide superior service. "
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