Zim bondholder stand-off risks driving Israeli carrier into liquidation

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Tough times for Israeli carrier Zim appear to be getting tougher. It’s a complicated story, centring on the bondholders who own around $390m of Zim’s overall debt of $3bn, and who are declining the line’s request that a $25m deposit due to be made on the debt be delayed until the end of next year. Cash is tight at Zim and if the bondholders continue to demand payment, there is genuine concern that the line could go bust. “We, the 1,000 Israeli employees of Zim, ask you not to sink Zim,” pleaded a letter from the company’s staff to the bondholders.