The relative quiet in which the negotiations between shipping company Zim, controlled by Israel Corp., and its bondholders have been conducted was disturbed at the end of last week. The body representing the bondholders sent a sharply worded letter to the company, informing it that it rejected the ultimatum that had been presented for deciding whether to accept Zim’s offer of a debt settlement. … Zim tried to calm matters at the weekend, and claiming that it had not presented the bondholders with an ultimatum. … Zim is on the final straight on the way to a rescheduling of debt totaling $3.5 billion. The company is in difficulties because of the crisis in the shipping industry and because of its aggressive ship procurement program, to finance which it took on debt which is now a heavy burden.

From Globes Israel Business News, October 11, 2009