On Air Mannin Line Andy Wint | Noon - 1:00pm

Steam Packet says debt burden is significantly reduced

The Steam Packet Company says it has 'significantly reduced' its burden of debt - and can now plan for the future with confidence. 

The company says it has restructured itself financially after a year of negotiations with its syndicate of lenders - although no figures on the scale of the reduction have been released.

In a statement released last night (Thurs) the Packet described the deal as a significant achievement - without the need for government funding.

 

Marian Kenny has more details:

The statement says the restructure will allow the company to focus on developing passenger and freight markets.

The company's need to service onerous debts with external lenders has been a cause for concern, in a situation where the operator has sole access to the linkspan through the current User Agreement.

Steam packet chairman Robert Quayle says the debt reduction is very good news for the company and the Island and puts the firm on a sound financial footing for the future.

But he warns there's a need for substantial new investment in modern vessels, and that will be raised in discussions with the Manx government in line with its wish to see the User Agreement revised for the future. 

 

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