Tshuva: No more cash for Delek Real Estate

Yitzhak Tshuva notifies Delek Real Estate Ltd. that he will cease to support the company.

April 24, 2012 23:12
1 minute read.
The Jerusalem Post

yitzhak tshuva 311. (photo credit: Delek group via Bloomberg)


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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 Monday.

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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 court.

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 near.

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.

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