Meeting called to approve Zim recovery plan

Meeting called to approve Zim recovery plan    Israel Corp. said it has called a shareholders meeting for October to approve a recovery plan for Zim Integrated Shipping Services subsidiary.
   The recovery plan “includes a number of initiatives to significantly streamline operations — several of which are ongoing,' Israel Corp. said. 'Shipping lines have been rationalized and rearranged, leased ships have been returned to their owners, and the supply of new vessels from shipyards has been postponed. The recovery plan will also reduce operational and administrative expenses, including redundancies, as staff numbers are rationalized to meet existing activity levels.”
   The company said its board on Thursday approved a Zim transaction report. The company did not immediately provide details on the report but Rafi Danieli, Zim’s chief executive officer, said the approval marked an important step in stabilizing Zim's financial position.
   'This is the deepest, most severe shipping crisis in memory, affecting every operator in the industry. From the beginning of the downturn Zim has taken every necessary step to lessen the impact on our business,' he said.
   “While the current downturn is predicted to continue for some time, Zim anticipates a positive reaction to its recovery plan as it trades its way back to a strong financial position. Throughout the downturn the company has maintained an intense focus on delivering its full range of integrated shipping services to its customers without interruption, and it continues to meet all suppliers' obligation,” the company said.
   In late August Israel Corp. said its board voted to continue to support Zim, and approve an immediate injection of $60 million, secured with adequate securities from Zim. Israel Corp. said the injection was required and essential for the continuance of Zim’s business activity. This sum and an another $40 million constitute part of a total $350 million Israel Corp. may inject into Zim.