Creditor banks have agreed to postponement of payment of debt instalments
Helsingin Sanomat
The Estonian shipping company Tallink is involved in a serious debt spiral.
At the end of August the company had debts at interest of EUR 1.2 billion and capital of its own of just EUR 643 million. At the end of the accounting period Tallink’s cash reserves were a mere EUR 50 million.
The company’s gearing ratio (loan capital divided by capital employed) was 176 per cent. Presently a company’s solidity is understood to be weak if the gearing ratio is more than a hundred per cent.
The getting into debt started when Tallink began to expand its business. Three years ago the company bought its competitor Silja Line for EUR 470 million.
Continue reading here:
http://www.hs.fi/english/artic...
Tallink shipping company has drifted into shoals of debt
Eestlased Eestis | 16 Dec 2009 | EWR
Eestlased Eestis
TRENDING
