Still subject to creditor and shareholder agreements, as well as an extraordinary general meeting of Israel Corp, the deal would include a $1.4bn debt equity conversion.
Forborne loans and adjusted charter contracts total up to $180m in support for the Israeli line, adding to Israel Corp's agreement to forgo $225m of loans, offer a $50m liquidity line and invest $200m in fresh equity.
A total of $1.4bn of debt will be written off under the deal and, together with equity injections, will leave the company with an estimated valuation of $600m to $800m.
Zim and the Israel Ministry of Defense also came to an agreement on a "Golden share" to be held by the State of Israel to protect "national strategic interests."
Rafi Danieli, Zim ceo commented: "We are delighted to have reached these agreements after many months of hard work. We are grateful to Israel Corp for all of its support and additional investment and to all our creditors for their efforts to get us to this point and for the support they have given to the management team and the business plan. We are confident that the "New Zim" with its strong balance sheet is well placed to open a new exciting chapter in its development."
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited.  Add Seatrade Maritime News to your Google News feed.   Â