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 225m.
in payments spread out over the course of five years. Calcalist cited a NIS 235m. injection from Elzstain and NIS 400m. for bondholders, with NIS 40m.
paid out each subsequent year. Bondholders will also get 15 percent of IDB holdings, worth some NIS 80m., and additional bonds.
The 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.
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