Zim steams ahead with cash boost
Loss-making shipping line Zim will receive a multimillion dollar cash injection, following approval of the rescue plan by its parent company’s shareholders.
The Israeli carrier will receive a capital injection of US$450m from parent Israel Corp and also a $100m safety net.
The capital injection will be converted into equity.
Zim CFO Allon Raveh said: "This result means we’ve completed a major strengthening and stabilisation of the company’s capital structure, which makes Zim a completely different company in terms of its financial structure.
"Zim will receive an injection of almost half a billion dollars of capital investment from Israel Corp, as well as a further half a billion dollars of new financing from three banking syndicates to finance the acquisition of our new vessels.
CEO, Rafi Danieli added: "With these arrangements in place, Zim is now fully prepared to trade its way out of the global economic downturn and back to profitability and growth.
"We must now, as always, focus on delivering the highest possible standards of service to our customers. We are committed to developing an even greater range of services, and we are confident that this approach will be a major contributing factor to our overall goal of increasing our customer base."
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