Restructuring the debt of a global shipping company

• 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.

For more information: Daniel Zinger, Daniel.Zinger@tasc-consulting.com