Israel Corp. loses control of the shipping company in the largest-ever debt write-off in Israel's history.
It took less than a month for the record NIS 2.8 billion debt settlement and write-off at Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) to be broken. On Wednesday evening, Zim Integrated Shipping Services Ltd. and its creditors signed a debt settlement that includes a NIS 5.25 billion write-off by the creditors - 50% of Zim's $3 billion debt - mostly to foreign banks.
Zim's creditors - Israeli and foreign banks, shipyards, and bondholders - will acquire 66% of the company, effectively taking over its board of directors. Zim's owner, Israel Corporation (TASE: ILCO), will inject $200 million into the company, and be left with a one-third stake in it.
Zim will terminate its current bonds and issue new bond series. Israel Corp. controlling shareholder Idan Ofer and his partner Udi Angel will forego hundreds of millions of dollars that Zim owes their shipping companies.
Published by Globes [online], Israel business news - www.globes-online.com - on January 16, 2014
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