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Horizon Lines, Inc. Message Board

  • billberggren billberggren Mar 29, 2011 3:53 PM Flag

    $45 million fine - going concern

    Seems the problem is the $5 million fine. If they can spread that fine out over 10 years that is $4.5 million a year, and the taxpayer would still get its money.

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    • I think the issue is the covenant with lenders. They need the lenders approval. It doesn't sound like a cash flow issue.

    • They spent about $15 million a year on the dividend alone and they just cut it and now they can't pay the fine. Even during the 4th year the fine is equal to the dividend. These guys seem dishonest.

      Under terms of the plea agreement, which is subject to court approval, Horizon Lines will plead guilty to a charge of violating section 1 of the Sherman Act with respect to the Puerto Rico tradelane between May 2002 and April 2008 and pay a fine of $45 million. The fine is payable over a five-year period as follows: $1 million within 30 days after imposition of the sentence by the court, $1 million on the first anniversary thereafter, $3 million on the second anniversary, $5 million on the third anniversary, $15 million on the fourth anniversary, and $20 million on the fifth anniversary.

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