Zim’s future is still uncertain

Alphaliner reports that Zim has recorded a full year net loss of U$535m, the worst annual result in the company’s history. Operating losses reached US$139m, excluding US$53m in non-recurring items, primarily from impairment charges for vessel cancellations and early retirement payments which was offset by disposal gains from the sale of two Chinese container manufacturing factories.

The loss brought Zim’s shareholder equity to US$582m against debt obligations of US$2,520m. Zim remains the only major carrier with negative equity and is in discussions with its creditors to write off a large part of its outstanding debt.

Zim signed a MOU with most of its creditors on January 22, 2014 for an arrangement outlining a restructuring of Zim’s capital and debt structure. The deal would involve the reduction of the Israel Corp’s stake from 99% to 32%.