(Adds company comment, detail)
April 28 Horizon Lines said a federal
court has reduced a criminal fine imposed on it for fixing
shipping prices, easing concerns of a possible bankruptcy,
sending the container shipping company's shares up 9 percent in
"The fine reduction...will facilitate our efforts to secure
new long-term financing. We remain in constructive discussions
as we continue to move forward with our refinancing efforts,"
Chief Financial Officer Michael Avara said in a statement.
The United States had filed a motion earlier this week in a
district court to reduce the criminal fine to $15 million from
The reduced fine of $15 million is payable over five years
without interest, the company said.
In February, the company had pleaded guilty to one felony
count of fixing the price for shipping heavy equipment, medicine
and other goods to Puerto Rico.
The motion filed had said the company will likely be forced
to seek bankruptcy protection if the fine was not reduced.
The company had said in March that it could be forced to
seek bankruptcy protection for not being able to comply with its
debt agreements. [ID:nL3E7ET2M6]
Horizon Lines shares closed up 12 percent at $2.14 on
Thursday on the New York Stock Exchange.
(Reporting by Vaishnavi Bala in Bangalore; Editing by Don
((firstname.lastname@example.org within U.S. +1 646 223 8780
outside U.S. +91 80 4135 5800 Reuters