ZIM announces the completion of its comprehensive debt restructuring, paving the way for a reinvigorated group to capitalize on the recovery in the global trade. Following 18 months of intensive negotiations with all of its creditors, ZIM completed its restructuring yesterday when Israel Corporation invested $200 million of new equity into the company.
ZIM’s lending banks, ship-owners and bondholders have agreed to support a restructuring plan as a result of which creditors converted approximately $1.4 billion of ZIM’s total $3.4 billion debt and liabilities into a 68% ownership stake in ZIM. Israel Corporation invested $200 million of new equity in return for 32% of the shares in ZIM and will also provide a $50 million receivables financing facility.
ZIM’s remaining debt will mainly consist of debt secured by vessels with an amortization profile that is linked to ZIM’s business plan and unsecured notes listed on the Tel Aviv Stock Exchange with a maturity of nine years. In addition, ZIM has restructured its charter payments to ship-owners as a result of which they will be reduced by 46% overall.
ZIM’s restructuring provides the company with a stable, long-term capital structure. The company will now focus on the implementation of its business plan, with a view to achieving profitability in the near future.
ZIM’s CEO, Rafi Danieli stated:
“ZIM's board charted the strategy of managing the complex negotiations towards the comprehensive restructuring agreement on the one hand, while persisting with the efficiency programs, which brought ZIM’s performance, for the first time in many years, to the industry average, on the other.
The Israel Corporation's willingness to forego its ZIM shares and transferring them to the creditors has been a significant contribution to the restructuring, and the $200 million investment enabled the successful conclusion of the process.
We deeply appreciate the support from our banks, ship-owners and, as well as our customers and suppliers, throughout our restructuring period. We wiil continue to focus on upgrading the services to our many loyal customers.
I would like to especially thank Evercore and Sullivan & Cromwell, our global financial and legal advisors, and GKH, Lipa Meir and S. Friedman, our Israeli and maritime legal advisors, for all of their support and advice throughout our restructuring.”
ZIM’s lending banks, ship-owners and bondholders have agreed to support a restructuring plan as a result of which creditors converted approximately $1.4 billion of ZIM’s total $3.4 billion debt and liabilities into a 68% ownership stake in ZIM. Israel Corporation invested $200 million of new equity in return for 32% of the shares in ZIM and will also provide a $50 million receivables financing facility.
ZIM’s remaining debt will mainly consist of debt secured by vessels with an amortization profile that is linked to ZIM’s business plan and unsecured notes listed on the Tel Aviv Stock Exchange with a maturity of nine years. In addition, ZIM has restructured its charter payments to ship-owners as a result of which they will be reduced by 46% overall.
ZIM’s restructuring provides the company with a stable, long-term capital structure. The company will now focus on the implementation of its business plan, with a view to achieving profitability in the near future.
ZIM’s CEO, Rafi Danieli stated:
“ZIM's board charted the strategy of managing the complex negotiations towards the comprehensive restructuring agreement on the one hand, while persisting with the efficiency programs, which brought ZIM’s performance, for the first time in many years, to the industry average, on the other.
The Israel Corporation's willingness to forego its ZIM shares and transferring them to the creditors has been a significant contribution to the restructuring, and the $200 million investment enabled the successful conclusion of the process.
We deeply appreciate the support from our banks, ship-owners and, as well as our customers and suppliers, throughout our restructuring period. We wiil continue to focus on upgrading the services to our many loyal customers.
I would like to especially thank Evercore and Sullivan & Cromwell, our global financial and legal advisors, and GKH, Lipa Meir and S. Friedman, our Israeli and maritime legal advisors, for all of their support and advice throughout our restructuring.”