Monday, October 12, 2009

Zim's problem

Zim's main problem is, it needs $1 Billion dollars between 2009 and 2013.

This is what it plans to do, to get the money.

From The Journal of Commerce.

Israel Corp., which is controlled by the Ofer family, plans to inject $60 million into Zim and reduce by $150 million charter payments for 19 container ships owned by family firms.

Israel Corp. plans to inject a total of $350 million into Zim, the world's seventeenth largest ocean carrier.

Zim's recovery plan also involves cancelling and delaying box ship orders, returning vessels when their charters expire and shrinking its network and payroll.

I'm not really sure that's going to get them the billion they need.

The rescue meeting is set for Oct. 28. The other creditors/owners will get their say at that time, I guess.

I don't know why a lot of these plans haven't already been executed, like the shrinking of payroll and network. Plus, they should have already returned chartered tonnage, and should have already reduced the charter hires.

Someone has been asleep at the wheel.

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