Tuesday, January 20, 2009

BC Ferries News


BC Ferries Borrows $248 Million
Restructures and Downsizes

About one month ago BC Ferries went to the bond markets and raised $140,000,000 by way of a senor secured bond which bears interest @ 6.214% per annum due Dec. 2013.

They also borrowed $108,000,000 from a German bank bearing interest @ 2.95% to be repaid in 12 years. These funds are for the purchase of the new ferry Northern Expedition which is being built by a German shipyard.

Downsizing

President and CEO David L. Hahn announced today that BC Ferries has undertaken restructuring and downsizing initiatives that will primarily affect management and administrative positions.

“In the face of a significant drop in ferry ridership and the resulting adverse impact on
revenues, we must act to reduce the company’s management and administrative costs,” stated Hahn.

“To date, we have transitioned approximately 35 management and administrative
positions, including several senior management and director level positions. While no front line or ship based employees are directly impacted at this time by this corporate restructuring, further changes and possible lay-offs are anticipated in shore based positions including unionized staff.

BC Ferries is one of the leading ferry services in the world and we are committed to
proactively aligning our costs with the marketplace during these uncertain and turbulent economic times,” said Hahn.

Due to the sensitive nature of these reductions, BC Ferries is not disclosing details and
the names of employees affected.

allvoices

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