The financial troubles of Israeli liner shipping venture Zim appear to be worsening with the company failing to achieve a waiver of financial covenants by a year end deadline.

Zim faced a year end cut off for winning concessions so may now have to classify its obligations as short term debt.

The 3,429-teu Zim Asia (built 1996).
Israel Corp, the Ofer family controlled conglomerate that has a 98% stake in Zim said the classification of debt as short or long term did not affect the standing of the container line’s financial covenants.

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