The Israel Corporation is ready to hand over its interest in Zim Integrated Shipping Services to the company’s creditors and walk away.

A debt restructuring plan to this effect for the financially beleaguered shipping company was presented to banks and its bondholders at the end of April, but was not made public.

Zim has $3.05 billion in debts to banks, bondholders, and to owners of ships it has leased. Israel Corporation, controlled by Idan Ofer, is offering to convert the entire unsecured portion of the debt and $613 million of its partially-secured obligations into Zim shares, leaving itself without any stake in the company. Israel Corporation already reported in its 2012 financial statements having committed all its shares in Zim to securing its liabilities, thereby signaling its unwillingness or inability to sink more funding into the floundering company.

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