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ZIM completes debt restructuring

ZIM completes debt restructuring
Israeli box line ZIM has completed its $3bn restructuring, which includes the write-off of $1.4bn in debts, after 18 months of negotiations.

The final part of the deal went through on 16 July when Israel Corporation injected a $200m equity investment into the line.

Of ZIM's total $3.4bn debt, $1.4bn has been converted into a 68% ownership stake. Israel Corp transferred a large number of its shares to creditors, but still holds a "golden share," the terms of which were agreed earlier this week, but not made public.

Israel Corp's $200m investment and $50m receivables financing facility earned them a 32% holding in the company.

As part of the restructuring process, ZIM renegotiated its charter payments to shipowners, reducing payments by a total of 46%.

"ZIM's board charted the strategy of managing the complex negotiations towards the comprehensive restructuring agreement on the one hand, while persisting with the efficiency programs, which brought ZIM's performance, for the first time in many years, to the industry average, on the other," ZIM's ceo, Rafi Danieli stated.

"We deeply appreciate the support from our banks, shipowners and, as well as our customers and suppliers, throughout our restructuring period. We will continue to focus on upgrading the services to our many loyal customers," he added.