ZIM concludes the first quarter showing improvement on all parameters and recording an EBITDA of $29 million and a positive operating cash flow of $23 million, the company said in its press release.
ZIM CEO Danieli: “With a dramatically improved balance sheet and cost structure, the company is poised for a dramatic improvement in profitability over the coming years.”
ZIM recently announced that it has finalized the terms of its financial arrangements, an over $3bn restructuring plan including a $1.4bn debt equity swap with creditors, giving the company a robust financial structure and ensuring it is strongly positioned for successful growth. The agreements are subject to relevant creditor and shareholder approvals including a vote at a General Assembly of the Israel Corporation.
The substantial debt reduction, along with the injection of new equity as part of the agreement, will give ZIM the basis with which to compete successfully in the global shipping market. The estimated valuation of 'New ZIM' following the restructuring is $600-800m.
The Company has also reached an understanding with the Israel Ministry of Defense regarding a revised “Golden Share”. Changes in the terms of the “Golden Share” held by the State of Israel, once concluded, will ensure that state vital interests are fully safeguarded, while eliminating provisions that stand in the way of implementing the restructuring agreement. The company appeals to the relevant government ministers (defense, transportation and treasury) to expedite the final approval of the agreement. The restructuring agreement is essential if ZIM is to have a chance of a successful future.