Bank Hapoalim (TASE: POLI) has demanded payment in full, within ten days, of its NIS 355 million in loans to Scorpio Real Estate Ltd. (TASE: SCRP.B1), owned by Beny Steinmetz.
According to Scorpio's notice to the Tel Aviv Stock Exchange (TASE), Bank Hapoalim is demanding the early repayment "in view of the significant deterioration in the company's condition and business results, and in view of the company's breach of its commitments to the bank to maintain a minimum financial ratio of equity." The bank has also cancelled the company's credit framework.
Scorpio said that Steinmetz had been informed by Bank Hapoalim that if the company did not repay the loans, he would be held liable to do so. Steinmetz told Scorpio that the bank's claims were groundless and that the company's debts and liabilities toward Bank Hapoalim were only guaranteed by Scorpio's parent company, Scorpio BSG Ltd.
Scorpio did not disclose what measures Bank Hapoalim might take if Steinmetz does not comply.
Bank Hapoalim's demand comes about a week after Beny Steinmetz Group Resources Ltd. (BSRG) sold 51% of its mining subsidiary BSG Resources (Guinea) Ltd. to Brazil's Vale SA (Bovespa: VALE) for $2.5 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 11, 2010
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