Israel Corp., the majority shareholder in Zim Integrated Shipping Services, said it has named Nir Gilad as chairman of the troubled shipping line.
Israel Corp., the majority shareholder in Zim Integrated Shipping Services, said it has named Nir Gilad as chairman of the troubled shipping line, replacing Idan Ofer whose five-year term has ended. Gilad, a former Accountant General and Deputy Head of the Budget Division of Israel's Ministry of Finance, is currently chief executive of Israel Corp., one of Israel's largest holding and investment companies.
Last week Zim reported a third-quarter net loss of $208 million, compared with $61 million a year earlier, as it was hit hard by the downturn in global trade.
A month ago Israel Corp. shareholders approved a restructuring plan for Zim that includes a cash infusion of $450 million in return for Zim"s issuance of stock rights.
The company said on Wednesday it has transferred $100 million of this amount to Zim, given it instructions to convert another $200 million in loans it had extended into rights units, and committed to paying Zim the balance of $150 million in one payment or installments on Zim"s demand in return for rights units equivalent to that amount.
Ofer, Zim"s outgoing chairman, and the Ofer family are the largest shareholders in Israel Corp. Ofer himself owns 3.9 percent of the stock, Ofer Holdings owns 2.9 percent, and the Ofer family-controlled Millennium Investments Elad owns 46.9 percent.