Sea Containers wins latest battle over GE SeaCo with GE Capital

Sea Containers wins latest battle over GE SeaCo with GE Capital

   Sea Containers Ltd. has won the latest arbitration battle with General Electric Capital Corp., its co-owner of container leasing firm GE SeaCo.

   In September 2006, Stamford, Conn.-based GE Capital initiated the arbitration case by asserting that Sea Containers’ founder James Sherwood’s retirement in March 2006 represented a change of control that triggered a clause allowing the U.S. company to buyout its partner. It was the third such disagreement since GE SeaCo was established in 1998 after the two firms merged their container assets.

   The Arbitrator of the Commercial Arbitration Tribunal in the International Institute for Conflict Prevention and Resolution found that Sherwood’s departure did not represent a change of control.

   “The favorable arbitration ruling is a major step forward in Sea Containers’ efforts to advance its financial reorganization. Sea Containers looks forward to working with GE Capital to maximize the value of GE SeaCo,” Sea Containers said in a statement.

   An interview with Angus Frew, GE SeaCo’s president and chief executive officer, appears in the September American Shipper, pages 72-74.