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Zim restructuring upset when State of Israel retains its golden share

ISRAELI flag carrier Zim cannot shed its "golden share", which gives the government holder override powers in the company whatever will of the directors.

Despite expectations to the contrary, Israeli Finance Minister Yair Lapid has said the country would not give up its golden share in Zim, reported American Shipper.

Zim's parent, Israel Corp, said a shareholder meeting previously scheduled for June 27 to approve the restructuring plan that rested on the government waiving its golden share, would be postponed to July 4.

Under the new arrangement, Zim shares were to be cancelled to allow the establishment of a new company with new articles of incorporation.

A notice on the ministry's website said that the decision was made after a meeting with representatives of the Ministry of Finance, the Ministry of Defence, Ministry of Transport, and Ministry of Justice that heard the positions of Zim and Israel's Merchant Marine Officers Association.

Israel's Globes newspaper said the discussions "emphasised the strategic, security and economic aspects."

Sources told Globes: "Waiving the golden share is not a condition in the wording of the debt settlement, but Zim said it deliberately kept the demand out because its creditors agreed to the settlement on the basis of verbal understanding that the company would secure the government's waiving the golden share."