Zim bondholders taken for a boat ride

Zim invited bondholders to a tour of its new ship for lunch and to meet executives in two weeks.

In the wake of the debt settlement with its bondholders, Zim Integrated Shipping Services Ltd. is trying to tighten its ties with them. The wholly-owned Israel Corporation (TASE: ILCO) subsidiary invited the bondholders to a tour of its new ship at the Haifa Port in two weeks. The bondholders will meet Zim executives, receive a market survey, and be given lunch.

The global economic crisis precipitated a crisis in shipping, which pushed Zim into a financial maelstrom. The company was forced to reschedule over $3 billion in debt.

Zim's condition has since improved; it posted a net profit of $3 million for the second quarter, compared with a net loss of $186 million for the corresponding quarter, the company's first profit after two and half years of heavy losses.

Zim owes the bondholders $350 million. They gave the company a four-year grace period to repay the principal in exchange for up to 1.2% in higher interest. They also received options on Zim shares.

Published by Globes [online], Israel business news - www.globes-online.com - on August 31, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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