Eimskip, the largest shipping company in Iceland, announced yesterday that its 57 unsecured creditors have agreed to swap their loans for equity, according to The Financial Times. This has reduced the debt of Eimskip from EUR 1.6 billion to about 100 million. This makes Eimskip the first big Icelandic company in financial peril to secure a plan for recovery after the economic crisis last year.
The company was owned by billionaire Bjorgjolfur Gudmundsson, who was also the CEO of Landsbanki, until the government nationalised the country’s main banks. Eimskip was started in 1914. The company lost EUR 648 million last year and had revenue of EUR 719 million.
See more at the Financial Times