Sep 09 16:57
The shipping company has deferred $2 billion in payments to shipbuilders.
Israel Corporation (TASE: ILCO) told bondholders of wholly-owned subsidiary Zim Integrated Shipping Services Ltd. that it is not asking them to forego part of the debt, but only to delay payments on the bonds. Israel Corp. added that it transferred $100 million to Zim during August, and that it will transfer an additional $250 million as part of a Zim recovery plan, if the bondholders approve the debt settlement next month.
Israel Corp. will include in the Zim recovery plan a $150 million discount over four years on the leasing fees that Zim pays Ofer Shipping Holdings Ltd.
I don't know what these payments from Zim to Ofer are for, but I suspect it's a better deal for Ofer than for Zim.
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