Israel Corp, parent of Zim Integrated Shipping Services, said Tuesday it would provide the struggling carrier with $50 million as a "security net," and its controlling shareholder will match the payment.
The aid comes after Zim has been posting losses and missed a Dec. 31 deadline for restructuring its debt to creditor banks. The Israeli container shipping line company reported a $66 million loss for the third quarter of 2011.
The possibility that Israel Corp and its controlling shareholder Millenium Investments would each advance $50 million as a security net was first raised in 2009, Israel Corp said in a statement to the Tel Aviv Stock Exchange. At the time Zim was forced to restructure its debt.