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Bank loan may keep Vulkan afloat

Monday 04 March 1996 00:02 GMT
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Bank loan may keep Vulkan afloat

Germany's Bayerische Vereinsbank confirmed that it is considering providing a substantial loan for ailing shipbuilder Bremer Vulkan, which has applied for protection from creditors after disclosing a DM1bn loss for 1995. Vereinsbank is seeking a guarantee that Vulkan workers will not receive compensation payments in the case of bankruptcy as an additional security for its credit. Last week, Vulkan's creditor banks pledged to grant almost DM100m in fresh credit to keep the shipbuilder afloat for the next two months.

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