CHILE's Compania Sud Americana de Vapores (CSAV), the world's 14th biggest carrier, is receiving a capital injection of US$347 million from Quinenco and Marinsa, believed to be the first phase of a planned $1.2 billion investment.

Quinenco subscribed to $247 million of newly issued shares, while Marinsa subscribed for $100 million, reports Alphaliner.

In an announcement made last October regarding a plan to recapitalise CSAV, Quinenco committed to subscribing to up to $1 billion of the new capital increase. Quinenco's $247 million participation is equivalent to its 20.6 per cent shareholding in the shipping line.

The report said that Quinenco will have to increase its cash injection in case the CSAV share offer is not taken up by third party investors.

The restructuring plan also calls for a separation of CSAV's port, tugboat and logistics arm SAAM. The existing shareholders in the carrier will receive shares in the new company (SM SAAM), which will be traded on the Santiago Stock Exchange following the restructuring the exercise, it added.

Back in October, CSAV, then the 11th largest carrier in the world, received a US$1.2 billion injection from shareholders to strengthen its books after it warned of "very negative" earnings for the full year.

CSAV said it would use the funds to finance its $1 billion order of nine new ships that were to be delivered between 2010 and 2012, which the company then said was vital to reduce volatility and improve competitiveness.