Israel Corp, one of Israel's largest holding companies, said on Tuesday it would provide its ailing shipping unit Zim with $50 million as a "security net", and its controlling shareholder would make a similar payment, Reuters reports.
The aid comes after Zim was hit hard by a downturn in the shipping industry and has been racking up losses. The company reported a $66 million loss in 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.
Standard & Poor's Maalot late last year lowered its credit rating on Zim, Israel's biggest shipping company, to "BB-" from "BBB-", citing expectations for a significant worsening in its operating results.
The aid comes after Zim was hit hard by a downturn in the shipping industry and has been racking up losses. The company reported a $66 million loss in 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.
Standard & Poor's Maalot late last year lowered its credit rating on Zim, Israel's biggest shipping company, to "BB-" from "BBB-", citing expectations for a significant worsening in its operating results.