yitzhak tshuva 311.
(photo credit: Delek group via Bloomberg)
Trading in Delek Real Estate Ltd. shares was halted Wednesday morning following
a report by the company that it will publish clarifications concerning
negotiations with its bondholders.
Before trading was stopped, company
share and bond prices had sharply risen in pretrading, as the company nears a
settlement with its bondholders. However, the company subsequently issued
a statement insisting that it has not yet reached agreement with
Over the last few days, Delek Real Estate controlling
shareholder Yitzhak Tshuva has significantly increased his contribution to the
company’s debt settlement. He said he is willing to inject NIS 500 million
within nine years, to provide NIS 400m. in collateral for 16 years, and to
forgive a NIS 83m. company debt due him for bonds that he
Bondholders were requested to erase NIS 2.1 billion in bonds that
they hold, and to receive in their place NIS 1.3b. worth of two new bond
series. The granting of collateral is conditional upon the lending banks’
With respect to the flow of capital, Tshuva would be waiving
NIS 1b. worth of bonds and collateral. Bondholders are still deliberating,
though, whether to accept or reject the offer.
The company is
simultaneously preparing to receive a negative answer from uninsured creditors,
and has already completed the preparation of relevant legal documents needed to
request a stay of proceedings from the court.