Sunday , 26 January 2020
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Zim has received the first part of a US$100m safety-net injection from its parent company, as it continues the negotiations with its creditors to waive the financial covenants on its debt.

Zim receives US$100m safety net

According to Alphaliner, Israel Corporation that owns 99.9% of Zim’s shares, has injected US$50m into the company while the Ofer-controlled Millennium Investments Elad will contribute a further US$50m to Zim before the end of March. Millennium. Investments Elad is the controlling shareholder of Israel Corp at 46.9%, with the Ofer family owning a further

3.7% of the shares.

Zim was due to present an updated business plan to its creditors in January but the Israel Corp disclosed in a statement last week that the shipping line was still “in the process of formulating the business plan.”

As at the end of September last year, Zim’s financial liabilities stood at US$2,593m against shareholders’ equity of US$500m. This latest US$100m safety net, which was originally agreed in November 2009, will help to ease Zim’s short-term liquidity position.

The company is expected to post a fourth quarter net loss of over US$100m, based on Alphaliner estimates, which will further erode its shareholders’ equity. For the first three quarters of 2011 its net loss stood at US$238m. Full year financial results for 2011 are expected to be released at the end of March.

(Source: Alphaliner)