Israeli shipper Zim reported a narrower second-quarter loss on Sunday after wrapping up a $3.4 billion debt restructuring, and said the company was well positioned to compete in a recovering shipping industry.
The quarterly results were the first since the July 16 overhaul that included a debt-equity swap with creditors of about $1.4 billion, reducing conglomerate Israel Corp’s share in Zim to 32 percent from nearly 100 percent.
“The dramatic reduction in debt, together with liquidity infusions, which was part of the restructuring plan, position ZIM to compete successfully in the shipping industry,” the company said in a statement.
Zim, with a 2-percent global market share, said it would implement a new business plan that focuses on profitable lines, while upgrading its communications with customers and improving efficiency.
Its net loss in the second quarter was nearly $67 million, about $30 million less than in the April-June period of 2013.
Quarterly revenue fell to $875 million from $977 million in 2013, Zim said, attributing the fall to the closing of shipping lines and lost income from the sale of a container manufacturing plant in China.
Zim has been hit hard by prolonged economic downturn, and the restructuring deal came after months of negotiations when Zim’s lending banks, ship owners and bondholders agreed to convert debt into a 68-percent ownership stake.
The deal allowed the Israeli government to keep its golden share in the company, which gives it veto power over some major decisions and requires Zim to operate ships during times of emergency.
February 19, 2015
| Ports & Terminals | Terminals