ZIM announces the completion of its comprehensive debt restructuring, paving the way for a reinvigorated group to capitalize on the recovery in the global trade. Following 18 months of intensive negotiations with all of its creditors, ZIM completed its restructuring yesterday when Israel Corporation invested $200 million of new equity into the company, the company said in its press release.
ZIM’s lending banks, ship-owners and bondholders have agreed to support a restructuring plan as a result of which creditors converted approximately $1.4 billion of ZIM’s total $3.4 billion debt and liabilities into a 68% ownership stake in ZIM. Israel Corporation invested $200 million of new equity in return for 32% of the shares in ZIM and will also provide a $50 million receivables financing facility.
ZIM’s remaining debt will mainly consist of debt secured by vessels with an amortization profile that is linked to ZIM’s business plan and unsecured notes listed on the Tel Aviv Stock Exchange with a maturity of nine years. In addition, ZIM has restructured its charter payments to ship-owners as a result of which they will be reduced by 46% overall.
ZIM’s restructuring provides the company with a stable, long-term capital structure. The company will now focus on the implementation of its business plan, with a view to achieving profitability in the near future.