THE Israeli finance ministry is appealing to the Supreme Court to quash a lower court ruling that reduce the value of its golden share in Zim, a move expected to delay the US$3 billion restructuring plan.
An Israeli court ruled the state could keep its golden share, but raised the amount of stock shareholders could sell without government approval, reported Reuters.
Conglomerate Israel Corp, which has just under 100 per cent of Zim, said the court ruling would allow it to carry out restructuring on July 15.
But the finance ministry said it had appealed to the Supreme Court, asking for a postponement. It was unclear when the Supreme Court would discuss the case.
The ruling last week had called for Zim, which like other shipping companies has been hit hard by a faltering global economy in recent years, to seek authorisation for shareholders to sell 35 per cent or more of its stock, rather than a previous 24 per cent.
But it said the company must notify the government before shareholders could sell between 24 and 35 per cent of the shares and give the state 21 days to state any objections.
Israel Corp said that under the restructuring its stake in Zim will fall to 32 per cent after a $1.4 billion debt-to-equity conversion agreement with creditors.
WORLD SHIPPING
10 July 2014 - 20:13
Israeli government goes to Supreme Court to keep Zim's golden share
THE Israeli finance ministry is appealing to the Supreme Court to quash a lower court ruling that reduce the value of its golden share in Zim, a move expected to delay the US$3 billion restructuring plan.
WORLD SHIPPING
10 July 2014 - 20:13
Israeli government goes to Supreme Court to keep Zim's golden share
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