Israel Corp., the parent of Zim Integrated Shipping, announced a two-week delay to a shareholders' meeting to vote on a recovery plan for the financially ailing ocean container carrier.
Israel Corp., the parent of Zim Integrated Shipping, announced a two-week delay to a shareholders' meeting to vote on a recovery plan for the financially ailing ocean container carrier. The meeting, originally scheduled for Oct. 14, will now be held on Oct. 28, Israel Corp. said in a statement to the Tel Aviv stock exchange.
"The postponement ? was aimed at giving Zim the opportunity to complete details of the recovery programme agreed by the various parties," the company said.
The recovery plan includes a proposal to defer payment of principal on Zim bonds until the carrier has paid down its secured debt.
Zim is currently negotiating with bondholders, which include leading Israeli institutional investors who also own shares in Israel Corp.
Zim, which was in the midst of a major expansion when the container shipping market slumped a year ago, said it faces a $1 billion cash flow deficit between 2009 and 2013. It posted a $305 million loss in the first six months of 2009.
Israel Corp., which is controlled by the Ofer family, plans to inject $60 million into Zim and reduce by $150 million charter payments for 19 container ships owned by family firms.
Israel Corp. plans to inject a total of $350 million into Zim, the world's seventeenth largest ocean carrier.
Zim's recovery plan also involves cancelling and delaying box ship orders, returning vessels when their charters expire and shrinking its network and payroll.