Update: Israel Corporation (TASE: ILCO) has postponed by two days the shareholders meeting to decide on a cash injection into troubled shipping line Zim Integrated Shipping Services Ltd..
Earlier today, Zim bondholders have approved the debt settlement, ahead of today's shareholders meeting by its parent company, Israel Corporation, which was scheduled for 4 pm. The vote was not official, and held in order to test the currents of the bondholders' mood.
The vote results were not a surprise. The main event will be the Israel Corp. shareholders meeting, where sources believe that shareholders will torpedo the settlement.
Last week, it was reported that Menorah Mivtachim Holdings Ltd. (TASE: MORA), the most important bondholder in today's vote, will oppose the settlement on the basis of Poalim Sahar's recommendation. HSBC also gave the settlement proposal a chilly reception today, suggesting that Israel Corp's controlling shareholder, Ofer Holdings Group, will have a hard time getting the proposal passed.
Israel Corp's share fell 1.5% by mid-afternoon today to NIS 2,571.
Published by Globes [online], Israel business news - www.globes-online.com - on November 1, 2009
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