CMA CGM in deal to revamp $4.6bn debt The world's third-largest container shipping group, CMA CGM, has reached a deal with its banks to restructure its debts as it warned of continued volatility in the sector. Michel Sirat, chief financial officer of the Marseille-based carrier, said on Tuesday a deal had been reached "in principle" with its 72 banks to restructure loans of $4.6bn. The company, which has a further $1.1bn outstanding in bonds, started talks with its lenders in March. Mr Sirat said he was now "comfortable" with $600m in loans that mature next year. The agreement with the group of lenders will see a $400m tranche of debt, due to mature in February, deferred by two years along with a modification to the group's covenants, to link them to gearing rather than to profitability. As part of negotiations with the banks, CMA CGM is also disposing of some assets, including the sale and leaseback of some of the 100 vessels it owns in the 394-strong fleet it operates. Mr Sirat said he also expected to announce the sale of a 49 per cent stake in Terminal Link, the company's terminal operating business, which owns stakes in 30 terminals worldwide, in January. Last month, the Saadé family, which controls the shipping line, agreed to dilute its stake to 70 per cent in a deal that will see $250m injected into the group as part of negotiations with its banks. Mr Sirat said it was "difficult" to give an outlook for 2013 given the continued volatility of the market, which is plagued by overcapacity and falling freight rates. Earlier this week, Danish conglomerate AP Møller-Maersk, the world's biggest container carrier, delivered a damning assessment of the state of the sector and signalled it would switch investment to its other businesses. CMA CGM reported net profits for the first nine months of $310m, up from $13.2m for the same period in 2011. Mr Sirat said the company expected to remain profitable in the fourth quarter, despite concerns about the erosion of rates. He said it would report net profits for 2012 ahead of those for the first nine months of the year. The company's profitability was boosted by a strong third quarter with net earnings of $371m, helped by an aggressive cost cutting programme that saw operating expenses fall by $300m, or 7.7 per cent, compared to the same quarter last year. This included a 15 per cent cut in fuel costs and a 20 per cent cut in charter costs. So far this year the company has cut operating costs by 5 per cent or $550m.