Yitzhak Tshuva yesterday notified Delek Real Estate Ltd. that he will
cease to support the company from May 6, after the company’s bondholders kept
making new demands, even after signing an agreement in principle for a debt
settlement and Tshuva made concessions to their position.
Tshuva sent the
letter after last-minute negotiations on a settlement between Delek Real Estate
CEO Eran Meital and the bondholder representatives broke down on
If the bondholders do not quickly reach a deal with Delek Real
Estate and Tshuva, the court will reportedly accept the petition of the Series
25 bondholders to liquidate the company.
A source close to Tshuva said,
“We’ve stopping playing games. The bondholders went too
far. They’ve crossed every line with their demands, and the time has come
for the court to decide.”
Tshuva also sent the letter to the
This week, representatives of Delek Real Estate and the
bondholders continued to wrangle over the details of a possible debt settlement.
“The bondholders’ conduct proves that they don’t really want a settlement. They
don’t understand that the company is on borrowed time,” said a source close to
the company earlier this week, in response to media reports that a deal was
That same day, Delek Real Estate stated in response to media
reports of an agreement that there was in fact none, and that its possible on
liquidation was unchanged.
“The bondholders have chosen liquidation,”
said another source, summarizing the situation. “The company cannot
continue to exist.”
Delek Real Estate’s share price fell 1 percent in
early trading today to NIS 0.19, giving a market cap of NIS 76 million.