M&A

1 November, 2009

Shareholder vote on Zim recovery plan delayed

JERUSALEM, Nov 1 (Reuters) - A meeting by holding company Israel Corp (ILCO.TA) shareholders that would vote on a recovery plan for its troubled shipping unit Zim will continue on Tuesday, Israel Corp said on Sunday.

Shareholders began meeting on Sunday to decide on delaying paying the principal on Zim's bonds.

Israel Corp last month said it had reached understandings with the majority of Zim's creditors that will take part in the company's recovery plan.

It said last that Zim had been hard hit by a crisis in global trade, which hurt the shipping industry just as Zim was expanding and ordering new ships.

The decision to implement a recovery program was the result of forecasts of a cash flow deficit of $1 billion from 2009 to 2013.

Israel Corp has said the creditors with whom it reached agreements represent more than 95 percent of the debts and commitments of Zim that are included in the plan. (Reporting by Steven Scheer, editing by Martin Golan)

Source: http://www.reuters.com