Zim’s financial debt stood at US$2.49bn at the end of September 2013 and it had been operating with negative equity since the fourth quarter of 2012. The Israel Corp. is reported to have agreed to inject US$200m in return for a 33% stake in Zim. Israel Corp’s controlling shareholders, Idan Ofer and partner Udi Angel are also expected to forego some US300m that Zim owes on ships chartered from XT Shipping (formerly known as Ofer Shipping).
The resolution of Zim’s financial problems will put the company in a stronger footing to compete. Its market share and global ranking have been eroded in recent years, from 2.5% in 2000 (ranked 11th) to 1.9% (ranked 18th) currently as its financial troubles kept expansion plans at bay.
According to Alphaliner data as at January 1, 2014, Zim currently operates 87 containerships for 332,249 teu, of which 25 units for 133,394 teu are owned.
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