IDB given 8 weeks to submit debt settlement
Tel Aviv District Court Dankner until October 20 to submit a debt settlement. Court set to make final ruling on November 25
An Israel
court has given conglomerate IDB Holding an eight-week extension to submit a debt settlement as Chairman Nochi Danker
fights to keep control of the company and prevent a takeover by bondholders.
The Tel Aviv District Court had been expected to rule on Sunday but a flurry of activity this past week convinced the court to give Dankner until October 20. The court will make a final ruling on November 25 after a November 14 meeting of bondholders, according to court documents released on Monday.
Debt
Chairman of debt-laden Israeli conglomerate IDB Holding makes new debt restructuring offer, in bid to appease bondholders seeking to oust him
Many of the companies IDB owns have been hit by slowing economic growth and increased competition. IDB Holding owes bondholders NIS 2 billion and IDB Development owes a further NIS 5.8 billion.
Bondholders of both companies have proposed a debt restructuring that would oust Dankner and give them full control of a combined company.
The court approved IDB unit IDB Development's sale of a 32% stake in subsidiary Clal Insurance, Israel's No. 2 insurer, for NIS 1.472 billion ($409 million) to Hong Kong's JT Capital Management. It also urged the capital markets regulator to reconsider a decision to temporarily transfer control of IDB's Clal Insurance shares to a trustee.
Dankner has partnered with Ukrainian businessman Alexander Granovsky, who plans to take over IDB by acquiring mobile technology firm Emblaze through investment firm BGI Investments and using its cash reserve.
Emblaze would inject NIS 826 million into IDB Holding, provided IDB first settles its obligations to its creditors. A new company would be set up that would be 70.3% owned by Emblaze and 29.7% by Dankner.
Separately, Argentine businessman Eduardo Elsztain is in talks with bondholders of IDB Holding to invest NIS 770 million in subsidiary IDB Development in exchange for a 50.5% stake. But the court at this time opted not to approve the proposal.
IDB controls Cellcom, Israel's leading mobile phone operator and supermarket chain Super-Sol.
