ZIM has announced its creditors have agreed to a restructuring plan in which they converted US$1.4 billion of company's $3.4 billion debt into a 68 per cent shareholding, reports Reuters.
The troubled company, with a two per cent global market share, posted a $63 million first quarter year-on-year loss against a $112 million loss in the first three months of 2013.
Israel Corp, which held almost all the stock before the deal, invested $200 million in return for dropping its holding to 32 per cent.
Israel Corp will also provide a $50 million receivables financing facility, Zim said. Zim's debt is mostly secured by the ships it owns and by unsecured nine-year bonds listed on the Tel Aviv Stock Exchange.
"Restructuring provides a stable, long-term capital structure. The company will now focus on a plan to achieve profitability," said a company statement.
The restructuring comes after Israel Corp and the finance ministry reached a compromise on the government's "golden share" in the world' s 17th biggest shipping company.
The compromise allowed the government to keep its golden share, which gives it veto power over some major decisions and requires Zim to operate ships during times of emergency.
WORLD SHIPPING
19 July 2014 - 07:24
Zim's debt-to-equity restructuring scheme declared a done deal
ZIM has announced its creditors have agreed to a restructuring plan in which they converted US$1.4 billion of company's $3.4 billion debt into a 68 per cent shareholding
WORLD SHIPPING
19 July 2014 - 07:24
Zim's debt-to-equity restructuring scheme declared a done deal
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