IDB debt settlement saga nears end
IDB bondholders Monday night agreed on a debt settlement with the company’s
controlling stakeholder Nochi Dankner, bringing a drawn-out saga in one of
Israel’s largest holding companies close to an end.
The deal, which will
keep Dankner in his position, rests on Argentinean billionaire investor Eduardo
Elzstain injecting fresh cash into the company.
Media reports on the
details were inconsistent. According to Globes, bondholders will receive NIS 235
million immediately when the agreement is signed, plus an additional NIS
in payments spread out over the course of five years. Calcalist
cited a NIS 235m. injection from Elzstain and NIS 400m. for bondholders, with
paid out each subsequent year. Bondholders will also get 15
percent of IDB holdings, worth some NIS 80m., and additional bonds.
settlement is over the NIS 1.7 billion IDB owes bondholders, of which NIS 134m.
in principal payments are due this year, NIS 65m. in May alone. As of the start
of the year, the company had NIS 195m. in cash.
IDB also owes NIS 300m.
to Bank Leumi and Credit Suisse. Repayments on the company’s bank debt over the
coming year amount to a third of its debt to the bondholders.