Delek Real Estate bondholders call for Tshuva bond boycott

The call comes after Menorah Mivtachim chairman Menachim Gurwitz said the company would not participate in any offerings by Delek Group companies.

Bondholders of Delek Real Estate Ltd. (TASE: DLKR), controlled by Yitzhak Tshuva, have called on investment institutions not to participate in bond offerings by Tshuva's other companies held through Delek Group Ltd. (TASE: DLEKG). The call comes after Menorah Mivtachim Holdings Ltd. (TASE: MORA) chairman Menachim Gurwitz told "Channel 10" yesterday that the company would not participate in any offerings by Delek Group companies, until a debt settlement is signed with Delek Real Estate.

The bondholders are trying to put pressure on Tshuva, after Delek Real Estate missed bond payments, while Delek Group is continuing to raise hundreds of millions of shekels in debt.

Adv. Guy Gissin, the representative of Delek Real Estate Series 25 bond, said that as long as Delek Group companies were able to raise capital from the public, it was difficult to pressure him to offer "proper support" for a debt settlement by Delek Real Estate.

Delek Real Estate owes its bondholders NIS 2.1 billion. Last year, the bondholders agreed to postpone a bond payment due in September until January 31.

Published by Globes [online], Israel business news - www.globes-online.com - on January 5, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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