Wednesday, August 26, 2009

Zim fights back

The Israel Securities Authority yesterday disallowed a vote by a minority shareholder, and today Zim has contacted an attorney to try and get something done to change this.

They desperately need money to avoid bankruptcy.

From Lloyd's List

In a statement released today, Zim said: “It is important to note that Israel Corp’s position differs from the Israel Securities Authority, it believes that the required majority has in fact been achieved and the Board is therefore presently seeking legal council to consider its options.”

The statement goes on to say, “if the controlling shareholders and Bank Leumi votes had been counted, over 90% of the votes would be in favor of the fund injection.”

Zim chief executive Rafi Danieli said: “With the support of Israel Corp, ZIM is continuing with its efforts to formulate a long-term, comprehensive financial restructuring plan for the company.”

Sources in Israel said that a legal dispute with regulators would not typically end up in the court system, but would be solved through direct negotiations. However, analysts noted that Zim’s survival is at risk if the dispute persists.
Virtually no one believes that Zim can survive without infusion from its parent company. Zim employs over 7,000 people and is considered by some to be the national symbol of Israeli shipping.

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