Significant achievement for ZIM – newbuildings orders cancelled

Zim announced on March 19th its newbuildings orders were cancelled and advance payments partially refunded.

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.

The company 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 an additional 4 orders, pending shipyards approval. In addition, ZIM will be refunded for advance payments in the amount of $30 million for the cancelled orders.

The agreements postpone or cancel 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 vessel orders. < Korea Shipping Gazette >