Israel Corp shareholders approve Zim debt plans

Cairo: Zim Intergrated Shipping Services has fixed its debt arrangement, the largest ever seen in Israel. Shareholders of parent firm Israel Corp agreed the deal on Friday. The approval is subject to agreement with the state on the golden share in Zim that the state holds. “This is a vote of confidence in the company by Israel Corporation’s shareholders, after the debt arrangement received approval from 140 of Zim’s creditors around the world,” Zim ceo Rafi Danieli told local media after the vote.

The debt arrangement includes a haircut of 50% on a debt of some $3bn. Israel Corporation will inject $200m  into Zim, and will be diluted from 100% ownership to a holding of 32%. It will also make available guarantees of $50m, and will forgive $238m of debt.  [30/06/14]

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