ZIM Reschedules $115 Mln of Debt Payments
Israel’s container shipping company ZIM Integrated Shipping Services (ZIM) has reached an agreement with its creditors to reschedule payments of USD 115 million, during a period of up to 12 months starting from September 30, 2016.
With this agreement in place the company maintains its financial stability and will continue to develop its growth plan, says a statement from the company. Reaching this agreement is another proof of the confidence and trust that the creditors have in the company.
ZIM published the Q2 results, with a loss of USD 74M and positive Operating cash flow of $17.6mln. Despite unprecedented low freight rates and severe market conditions, ZIM maintained its top position in terms of EBIT margins, well above industry average
ZIM carried 617,000 TEU’s for the three month period ended June 30, 2016 , a 6.9% increase compared to Q1 2016, which is above market average growth for same period.
Rafi Danieli, ZIM’s President and CEO, said: “The very challenging market situation impacts the industry as a whole. Our strategic business plan, focusing on select markets where the company has a competitive advantage, is keeping ZIM in the top of the industry in terms of EBIT margins."
Rafi added: "The company keeps investing in customer service excellence and on-time delivery to our customers, as evident in a recent first place ranking awarded to ZIM in a schedule reliability performance report. We have increased our carried TEU in Q2 over Q1 by about 7%, which shows the trust of our customers in the company. Our fast reaction to market changes, and cost efficiency programs, aims at allowing ZIM to cope with the challenges faced by the industry".
