Zim Creditors Nearing Biggest 'Haircut' in Israeli History

Israel Corporation will forgo debt of 1.5 billion shekels, give up control of the shipping company.

As of Wednesday afternoon Zim Integrated Shipping Services is reportedly within hours of a debt settlement that included writing off half of the 3 billion shekels ($860 million) it owes to three major creditors: banks, bondholders and shipyards, and ship lessors.

Under the the deal, Zim's sole owner, The Israel Corporation, will give up its shares in the company and inject $200 million into it, in exchange for a 30% stake in the restructured company.

The debt restructuring talks began following a going concern warning in Zim’s financial statement for the third quarter of 2013.