The agreement will simplify the GE SeaCo joint venture and end all of the current claims and litigations involving the joint venture and its parents.
GE SeaCo is one of the world’s largest container lessors, managing and operating a container fleet of approximately 930,000 teu. The company was formed by the 1998 merger of the container fleets of GE Capital and Sea Containers and is operated as an internally financed, stand alone company.
Sea Containers Ltd and two of its subsidiaries are currently in Chapter 11 in the US Bankruptcy Court in Delaware. While the Chapter 11 case does not involve GE SeaCo or its own assets, one of SCL’s principal assets is its 50% holding in the joint venture. Since 2006, GE has designated a majority of members of GE SeaCo’s Board of Managers, while SCL continues to designate a minority of the members.