An agreement bondholders reached overnight on Thursday may oust Nochi Dankner from controlling IDB, the Israeli conglomerate that controls companies such as Cellcom and Shufersal.
The bondholders from two tiers of the pyramid company, IDB Holdings and IDB Development, would merge the two companies and convert bonds to stocks, thus wresting control from Dankner. IDB Holdings bondholders would get 10% stock of the new company, which will be still be called IDB Holdings, plus NIS 200m. in cash currently held.
The deal still needs court approval to move forward, but the united front is bad news for Dankner.
The bondholders are reportedly seeking court approval to appoint Eyal Gabai, the former Director-General for the Prime Minister's Office, to replace him in running the company.
Dankner denied that he lost control of IDB, and told Channel 2 on Friday that he does not intend to resign, and that he will make a better proposal from the "wrong and misguided" proposal made by bondholders.
"I did not lose control. It is true that there was a proposal this morning, but I don't know what they wanted to achieve with it," he said.
A series of investments gone sour in recent years left the company in a precarious position, leaving Dankner to seek debt settlements with the bondholders, investment from Argentine billionaire Eduardo Elsztain and debt forgiveness from banks.JPost.com staff contributed to this report.