Zim restructures US$115 million in debt as to better face savage market

Zim restructures US$115 million in debt as to better face savage market ISRAEL's Zim Line has rescheduled US$115 million in debt to better face the worst times in container shipping history, reports Lloyd's Loading List. Average freight rates have fallen 25 per cent to $903 per TEU year on year, resulting in a 19 per cent year-on-year quarterly revenue drop to $612 million. The line posted a loss in the second quarter of $74 million, with publication of the results delayed while the talks with creditors progressed. The rescheduled payments cover a period of up to 12 months starting end-September 2016, Zim said. "With this agreement in place, the company maintains its financial stability and will continue to develop its growth plan," the Haifa-based Zim said. Zim carried 617,000 TEU in the second quarter, a 6.9 per cent increase over the first three months of the year. "The very challenging market situation impacts the industry as a whole," said Zim CEO Rafi Danieli, whose line is one of the few majors not to be in a shipping alliance. "Our strategic business plan, focusing on select markets where the company has a competitive advantage, is keeping Zim in the top of the industry in terms of EBIT margins," said Mr Danieli, who has announced he will step down when a successor is found.