As part of a major financial restructuring plan, Israeli shipping firm ZIM Integrated Shipping Services (ZIM) will receive more than $500m, part of which will be used for debt repayment.

The fund, to be provided by the company’s Israeli and foreign banks, will enable ZIM to repay over more than ten years and allow the company to plan for newbuild vessels, Transportintelligence reported.

Earlier, the company had deferred most of its ordered vessels by two to five years due to shortage of funds.

ZIM has secured agreements in principle with banks, bondholders, shipyards and ship owners holding more than 95% of the company’s debt and obligations.

The banks have also agreed to grant ZIM full or partial grace periods of up to three years on principle repayments.

According to reports, Israel Corporation is also planning to invest more than $450m, which includes the conversion of existing loans; and along with related parties will provide a $100m safety net.

Israel Corporation will also retain an option for a financial reserve of $50m, to be used as needed for ZIM’s liquidity needs and operational purposes.