Israel Corp to lose control of Zim in proposed debt deal

The debt settlement plan involves the creditors of Zim writing off some $1.5bn of Zim's debt in exchange for 66% of the shipping firm's shares. Israel Corp will then inject $200m in Zim to keep a 33% stake in the company, local media reported.

Zim has been struggling with a weak financial position since the global financial crisis of 2008, accumulating a debt of $3bn that includes $775m in unsecured loans, $1.8bn in party secured debt to foreign banks, and $390m in fully secured debt to shipyards.

Back in 2009, Israel Corp had injected $550m into Zim, following a $250m injection the previous year, to keep the shipping line in business.