ZIM ship (archives)
Photo: Danny Solomon
Shipping giant ZIM fighting for its life
Israel Corporation and Idan Ofer have yet to transfer $100 million to company, which has yet to reach agreement with foreign banks over its $2 billion debt, Calcalist learns
The Israel Corporation and other companies under the control of Idan Ofer have yet to pour the $100 million safety net they pledged into the group's shipping company ZIM, Calcalist has learned.
At the end of the third quarter of 2011, the company and its parent company stated they would activate the safety net. But although more than two months have gone by without any improvement in ZIM's results, the company's controlling shareholders have yet to pour the money they pledged into the company.
The funds were to be poured into the company pursuant to the provisions of the debt restructuring agreement between the company and its bondholders in 2009, following the financial difficulties the company found itself in for the second time.
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In the meantime, the shipping company continues sailing into choppy waters, ending the third quarter of 2011 with a $66 million loss and expecting to post heavy losses for the fourth quarter of the year.
ZIM is currently holding talks with a number of foreign banks to which it owes about $2 million. As of the end of 2011, the company is in breach of its financial covenant to these banks and has not been able to reach an agreement to change the covenants.
Unless the company announces it has straightened out its affairs, it may face a demand to immediately repay its debt to some of the banks.
This report was originally published in Hebrew by Calcalist
