Israel Corp., the holding company of the loss-making Zim Integrated Shipping Services Ltd., reached an agreement with its bondholders Sunday night according to which debts of 350 million dollars, which were meant to be paid off between 2012 and 2015, will only be paid in 2016, which an option to push it off until 2020.
In exchange, Israel Corp, owned by the Ofer family, will raise the annual interest rate from between 0.4 and 1.2 percent and exchange of part of its loans to shares at a discount price.
The deal paves the way for a final approval of a rescue plan in which Israel Corp. will transfer 450 million dollars to Zim, spread out the payment of its debts to creditors and get half-a-billion dollars in bank funding.
MK Nachman Shai, a member of the Knesset Finance Committee, called for an urgent meeting of the committee to discuss the deal. He said the agreement leaves a "bad taste" and that the committee should intervene to protect the public interest.