Zim close to securing rescue deal

Zim has secured the acceptance of more than 95% of its creditors to the restructuring plan that it has put forth. An agreement appears to have been

reached with representatives of the Zim?s bondholders that will allow the company to put forward a restructuring plan for approval by its main shareholder, Israeli Corp. This is scheduled to take place at a special meeting which will be held on 1 November.

In order to secure the bondholder?s agreement, a $100m ?safety net? arrangement has been proposed, with Israel Corp. to provide $75m while Ofer will provide the remaining $25m. This amount is to be injected into Zim if certain trigger events were to occur that could limit Zim?s ability to

repay its debt to bondholders.

The safety net would be in addition to the $450m that Israel Corp has agreed to inject into Zim as well as the $150m in charter rate reductions

agreed with Ofer. Israel Corp will also provide a further $50m as financial reserve “for the purpose of maintaining flexibility in special circumstances

with regard to Zim?s liquidity needs and operational needs”.