Zim in talks to delay delivery of nine 12,600-TEU vessels
Zim Integrated Shipping Services, Ltd. has confirmed the company is in talks with Samsung Heavy Industries, the South Korea-based shipbuilding giant, on a further delivery delays for a series of nine TEU 12,552 mega-container vessels ordered in 2007, Port2Port reports.
Under the 2007 construction deal, Zim was to acquire eight container ships with an option for an additional unit, at US$171 million each. The option was exercised by Zim in December 2007, and the vessels were initially scheduled for delivery in 2012, but were later delayed to 2015.
At the end of December 2011, the company provided details on its financial position: Zim said in a statement, that its total debt to the banks stood at US$2.02 billion, of which short-term debt before adjustments for breaches to its financial covenants stood at US$254 million.
This contrasts with shareholder's equity of only US$351 million and committed shareholders' loans of US$150 million.
It was earlier reported that Israel's biggest shipping company's financial liabilities stood at US$2.51 billion, with current liabilities of US$812 million, which the company has clarified included working capital items and other liabilities not constituting financial debt.
According to a Standard & Poor's report of January 15, Zim is still likely to "have a deficit between its expected sources and uses starting from the end of 2012". But the ratings agency expects Zim's parent, Israel Corp, to continue to provide financial assistance as it has done before.
Zim has said in response: "Indeede, Zim has certain flexibility regarding delivery time of the vessels. The company is negotiating with the shipyard regarding further delay in delivery nehind 2015".