Zim Line Regards Newbuilding Cancellations an Achievement
Newbuildings orders for 5 container ships were cancelled and advance payments partially refunded by the shipbuilders.
In addition, the company reached an agreement regarding the postponement of payments due in 2013 for other orders. The agreements relieve the company from Off-balance sheet obligations amounting to $1.4 billion.
Zim reached an agreement to immediately cancel orders for 5 vessels and postpone delivery of other vessels to 2016. The company also has an option to cancel additional 4 orders, pending shipyards approval. In addition, the company will be refunded for advance payments in the amount of $30 million for the cancelled orders.
The agreements postpones or cancels payments due in 2013, amounting to $235 million. The agreement releases the company from Off-balance sheet obligations amounting to $1.4 billion. The company is expected to state a loss of $133 million in Q4 2012 as a result of the cancellations of vessels’ orders.