Zim close to securing financial restructuring
Israeli shipping line Zim has said that it is on the cusp of completing its financial restructuring, after securing initial agreements with its major debt holders.
It said its banks, bondholders, shipyards and shipowners – which together hold around 95% of its debt – have come to understandings in principle with the carrier, and involve a combination of deferred loan repayments and new finance.
Zim has outlined a series of measures to further reduce its costs, including reducing its service capacity and cutting staff numbers.
Under present proposals it is due to take US$500m in new financing from both foreign and domestic banks this year and next, with repayments due over the next decade.
It has additionally rescheduled repayments of much of its existing debt.
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