July 21, 2008
Horizon Lines indemnifies non-management directors
According to a filing with the SEC, on July 14, 2008, Horizon Lines, Inc. (HRZ) entered into an Indemnification Agreement with each of its non-management directors, including James G. Cameron, Vern Clark, Dan A. Colussy, Ernie L. Danner, James W. Down, Francis Jungers, William J. Flynn, Alex J. Mandl, Norman Y. Minetta and Thomas P. Storrs. The Indemnification Agreement provides that the company shall indemnify each director to the fullest extent permitted by law if he incurs any liabilities, losses or expenses arising out of a legal proceeding or investigation as a result of his or her capacity as a director.
The filing says "highly competent persons have become more reluctant to serve corporations as directors, officers, or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of such corporations"
Back in April, Horizon Lines was one of several Jones Act operators whose offices were raided as part of a Justice Department investigation of pricing practices of ocean carriers operating in the Puerto Rico trade. Subsequently, it was one of several lines named in in an antitrust class action suit alleging conspiracy to fix the prices of shipping services to and from Puerto Rico and other noncontiguous Jones Act markets.