Leviev. Hit hard
Photo: Avigail Uzi
Africa Israel warns may not last as 'going concern'
Real estate developer says its ability to continue as successful business at risk as it reports narrower quarterly loss
Real estate developer Africa Israel Investments said its ability to continue as a "going concern" was at risk as it reported a narrower quarterly loss on Sunday.
Earlier this month, Africa Israel defaulted on a series of bonds, failing to pay NIS 557 million ($146 million) of principal to holders of a series of bonds not included in the proposed restructuring
The company, controlled by billionaire Lev Leviev, has been hit hard due to the global financial and economic crisis and has been in talks for several months with bondholders to restructure NIS 7.4 billion ($1.9 billion) of debt.
Big Business
Golan Hazani, Calcalist
Bucharest shopping center to include 300 stores, movie theater with 25 auditoriums, and 100,000 sq ft. parking lot
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"Since... there is uncertainty surrounding a deal to restructure the debt and its approval by the court significant doubts exist that the company can continue as a going concern," Africa Israel said in a statement.
It recorded a third-quarter net loss of NIS 348 million ($91 million), or NIS 6.37 ($1.67) per share, compared with a loss of NIS 2.1 billion ($550 million), or NIS 40.99 ($10.76) a share, a year earlier when Africa Israel was hurt by a sharp decline in the value of its properties.
The company attributed much of its quarterly loss to NIS 325 million ($85 million) in financing expenses due a spike in inflation which affects the costs of its bonds.
