SeaContainers, GE Capital settle joint venture disputes

By Caroline Salls

Pittsburgh, April 30 - Sea Containers, Ltd. subsidiary GE SeaCo SRL said its parent companies Sea Containers and General Electric Capital Corp. have entered a settlement that will simplify the GE SeaCo joint venture and end all of the current claims and lawsuits involving the joint venture and its parents, according to a GE SeaCo news release.

GE SeaCo was formed by the 1998 merger of container fleets of GE Capital and Sea Containers and is operated as an internally financed, stand-alone company. GE SeaCo said one of Sea Containers' principal assets is its 50% holding in the joint venture.

According to the release, the settlement will provide Sea Containers with additional flexibility under the joint venture structure, which Sea Containers believes will expedite its financial reorganization and emergence from Chapter 11 bankruptcy.

The settlement is subject to approval by the U.S. Bankruptcy Court for the District of Delaware.

"Simplifying the JV structure will enable us to be even more responsive to our customers needs," GE SeaCo chairman and acting chief executive officer David Amble said in the release.

"Taking the ongoing litigation off the table will enable senior management to continue to build the business."

Sea Containers, a Hamilton, Bermuda-based provider of passenger and freight transport and marine container leasing, filed for bankruptcy on Oct. 15, 2006. Its Chapter 11 case number is 06-11156.

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