JR Shipping Group, owner and operator of the Dutch feeder operator, announced that it has reached a financing agreement with a British credit investment fund to refinance 11 feeder vessels.
The company said the British credit investment fund company has taken over JR Shipping's $ 126 million ($ 151 million) shipping fund, JR Fleet Fund CV, from North German bank to fund the company's 11 regional containers Boat financing.
On December 5, 2017, the executive board of Nordic Bank of Germany approved the transaction and completed the transaction on December 15.
It is understood that JR Fleet Fund CV is a reorganization of Northern Germany Bank in 2012, JR Shipping and its limited partnership. However, the market recovery expected by this restructuring has not yet come. Meanwhile, the container shipping market experienced a further decline during 2016. Although the current market has improved in the short term, JR Fleet Fund CV has not yet fully benefited.
In 2015, JR Shipping felt the need to refinance the fund and negotiated potential options with Northern German Bank. Northern German Bank said in September 2017 that it hopes to terminate its participation in the 11 ship financing and transfer it to the British investment fund.