DISCUSSIONS on the financial restructuring of Bell Line should start the next four to six weeks, with a view to implementing it as soon as possible, according to managing director, Mr Pat Hayden. The restructuring will involve both creditors and shareholders.
The need for a restructuring follows losses of around £6 million last year. Asked about changes in the share structure, he said this was still subject to "debate and discussion". Irish Continental Group has a 25 per cent interest following a management backed buy out in 1993. It has an option to buy out the remaining shares the value of which would be based on independent arbitration.
The major shareholders are two venture capital funds, NatWest Ventures and CVC Capital Partners, each with a 30 per cent stake. The Bell management has the remaining 15 per cent.
In last six months the company had made "considerable progress" in reducing a lot of the costs, said Mr Hayden. The company should break even, at the operating level (before interest) this year, and make a profit next year, he added.
Mr Hayden who had been Bell's director of ports and transport for Ireland and Britain, became managing director last August. He succeeded the leader of the 1993 MBO, Mr Fred Tucker who retired. Bell employs around 600 people in Ireland, Britain and continental Europe. Around 150 are employed in Ireland.
Bell has been suffering from intense competition from the Channel Tunnel but also had operational difficulties when a company, Eurocontainer Shipping, from which it had charted four vessels, went into examinership. Eurocontainer Shipping resumed trading following restructuring.
The need for restructuring at Bell came to light when ICG announced its results for the year ended October 31st, 1996. These showed a drop in pre tax profit from £11.0 million to £10.5 million, due to its share of Bell's losses and a write off of its investment in Bell.
