Israel Corp. lends Zim US$ 50M

The US$50 million long term loan is part of US$150 million in support that the parent company promised to its shipping subsidiary this year
 
The Israel Corporation, parent company of container shipping giant Zim Integrated Shipping Services, lent US$50 million to help the troubled Israeli carrier survive tumbling cargo volume and sliding freight rates.
 
The US$50 million long term loan is part of US$150 million in support that the parent company promised to its shipping subsidiary this year.
 
Israel Corporation's handing over of the US$50 million indicates that Zim's creditor banks do not plan to recall their loans, even though the shipping company is currently in breach of its financial covenants.
 
The loan from Israel Corp. comes a week after Zim announced first quarter 2009 losses widened to US$119 million from US$29 million in the year-earlier period and revenue shrank to US$622 million from just over US$1 billion. It lost US$322 million in 2008.
 
Zim has idled 20% of its fleet capacity and is returning chartered ships as they come off hire.