Cairo: Israeli containerline ZIM is has finalised the terms of its financial restructuring arrangements, a $3bn restructuring plan including a $1.4bn debt equity conversion with creditors following a protracted and complex series of negotiations.
The company has also reached an agreement with the Israel Ministry of Defense regarding a revised ‘golden share’. Changes in the terms of the ‘golden share’ held by the State of Israel, once concluded, will ensure that national strategic interests are fully safeguarded, while eliminating provisions that stand in the way of implementation of the restructuring agreement.
Israel Corporation has agreed to invest an additional $200m in new equity, provide the company with a liquidity line of $50m, and forgo $225m of loans that were part of a $1bn support from 2008-2012. In addition, related companies agreed to support the company by $180m, by amending charter contracts and forbearing loans.
Following the restructuring, Israel Corporation will see its stake reduced from 100% to 32. The estimated equity valuation of the new ZIM is $600-800m.
Chief executive Officer Rafi Danieli said: "We are delighted to have reached these agreements after many months of hard work. We are grateful to IC for all of its support and additional investment and to all our creditors for their efforts to get us to this point and for the support they have given to the management team and the business plan. We are confident that the 'New ZIM' with its strong balance sheet is well placed to open a new exciting chapter in its development." [20/05/14]