The cash injection was “essential for the continuance” of the financially struggling shipping line. The sum follows a previous US$40m pledge
The owner of Zim Integrated Shipping Services Ltd., Israel Corporation (IC) will inject US$60 million into Zim as part of its restructuring plan, an important step towards ensuring the financial stabilization of Zim.
The US$60m cash injection was “essential for the continuance” of the financially struggling shipping line, the statement noted.
The sum follows a previous US$40m pledge, promised to the shipping line as part of a possible US$350m financial restructure.
The cash injection follows IC's announcement at the beginning of the month that it is committed to ensuring the long-term financial stability of Zim.
A robust plan has been put in place which includes a series of steps designed to formulate a long-term plan aimed at ensuring the company can prosper once the global markets recover.
The strategy includes measures such as changing and modifying its lines, reducing the number of ships it operates, postponing deliveries of new ships, reducing costs of leased ships and other arrangements with ship-owners; and intensive negotiations with banks and financial institutions about restructuring Zim's debt.