Consulting with ZIM’s bondholders during the company’s debt-restructuring process
- Business Dilemma:
ZIM, Israel’s largest shipping company, had defaulted on its debt as part of the shipping-market downturn following the 2008 financial crisis. Our team was commissioned by local Israeli institutional lenders to consult in the negotiations over the refinancing of the company’s non-bank debt with the aim of recovering a maximum portion of their debt.
- Process:
Our team analyzed Zim’s debt structure and the company’s ability to service it in light of the expected market situation. The analysis included construction of a demand model of the company’s core activities and a financial model that examined possible debt-recovery scenarios. Our team advised bondholders in the tri-party negotiations with the company and its bank lenders with the goal of maximizing our client’s debt recovery.
- Strategic Solution & Impact:
A new debt structure with the revised division of collateral and securities was achieved, allowing the company to continue independent operations and the lenders to recover their debt.
