Israel's Zim pleads for further delays on nine 12,600-TEU ship deliveries
TROUBLED Israeli container line Zim Integrated Shipping is in talks with Samsung Heavy Industries on a further delivery delays for a series of nine 12,552-TEU ships ordered back in 2007. Thursday, 03.May.2012, 00:58 (GMT+3)
TROUBLED Israeli container line Zim Integrated Shipping is in talks with Samsung Heavy Industries on a further delivery delays for a series of nine 12,552-TEU ships ordered back in 2007.
A Zim spokesman has confirmed that the company was in discussions for a further delay of the deliveries, but declined to reveal the target dates, reports Alphaliner.
Under the deal, Zim was to acquire eight ships with an option for one 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 delayed to 2015.
The company has also provided further details on its financial position as at the end of December last year. Zim said that its total debt stood at $2.02 billion, of which short-term debt before adjustments for breaches to its financial covenants stood at $254 million. This contrasts with shareholder's equity of only $351 million and committed shareholders' loans of $150 million.
It was earlier reported that Israel's biggest shipping company's financial liabilities stood at $2.51 billion, with current liabilities of $812 million, which the company has clarified included working capital items and other liabilities not constituing 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 S&P expects Zim's parent, Israel Corp, to continue to provide financial assistance as it has done before, said Alphaliner.