THE Israeli Ministry of Finance and Zim owner Israel Corp have reached an accord on the state's "golden share" in Zim, the national flag carrier, paving the way for a US$3 billion debt restructuring plan, reports Reuters.
The accord allows the government to keep its golden share, which gives it veto power over major decisions and requires Zim to operate ships during times of emergency.
The sale of 24 - 35 per cent now requires the seller to give the government advance notice. If the state believes the sale will harm national security, it has 30 days to state its case, which is subject to court appeal.
The government last week appealed an Israeli court ruling regarding the golden share, but later the two sides said they have reached a compromise similar to the original court ruling.
This has led Israel Corp, which nearly owns all of Zim, to ask the district court to approve the restructuring deal reached with its shareholders. If approved, Israel Corp said it plans to carry out its part of the deal early next week.
Under the restructuring deal Israel Corp's stake in Zim will fall to 32 per cent after the execution of a $1.4 billion debt-to-equity conversion deal with creditors.
At the same time, the compromise requires government authorisation for the sale of 35 per cent or more of Zim, up from a current level of 24 per cent.
WORLD SHIPPING
16 July 2014 - 18:56
Israeli government, Zim owner Israel Corp end golden share impasse
THE Israeli Ministry of Finance and Zim owner Israel Corp have reached an accord on the state's "golden share" in Zim, the national flag carrier, paving the way for a US$3 billion debt restructuring plan, reports Reuters.
WORLD SHIPPING
16 July 2014 - 18:56
Israeli government, Zim owner Israel Corp end golden share impasse
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