Horizon Lines, Inc. confirmed that it has entered into a plea agreement with the Antitrust Division of the U.S. Department of Justice (DOJ).' Under the agreement, which is subject to court approval, Horizon Lines will plead guilty to a charge of violating federal antitrust laws solely with respect to the Puerto Rico tradelane and pay a fine of $45 million over five years without interest.

With the resolution of the DOJ investigation, Horizon Lines is in discussions with certain of its lenders to waive a judgment default that will arise from the plea agreement and to provide financial covenant relief as the company seeks new long-term financing.

"We are very pleased to have reached a resolution with the Department of Justice," said Michael T. Avara, Senior Vice President and Chief Financial Officer.' "We now look forward to moving ahead in our discussions with lenders.' We remain very focused on serving our customers well, further improving our operational excellence, and financially strengthening our company for the benefit of all of our stakeholders."