Israel Corporation Trying to Keep Zim Afloat
Israel Corporation is deeply engaged in negotiations to infuse hundreds of millions of dollars into Zim Integrated Shipping Services in an effort to keep the company afloat, Globes reports.
Zim struggles with a heavy debt load, a total of $3 billion, including $775 million in unsecured debt, $376 million owed to bondholders, $1.8 billion in partly secured debt, mostly to foreign lender banks, and $390 million in secured debts, mostly to shipyards.
If a debt settlement is reached, Zim will take on a multiyear streamlining plan, which Israel Corp. would partly finance.
This is the second time in four years that Zim has needed a debt settlement.
Israel Corp. secured approval for its capital injection into Zim in its 2009 recovery plan, barely overcoming objections by investment institutions. The same thing might happen this time too.
Israel Corp.’s own condition is far from robust after the loss of its investment in the bankrupt Better Place, upheaval in the global potash market, where Israel Chemicals operates, and the possibility of higher royalties.
This article appeared in print on page 7 of edition of Hamodia.
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