Delek Real Estate Ltd. (TASE: DLKR), controlled by Yitzhak Tshuva, notified the courts that it would not oppose a petition for liquidation, and that it would ask the court to hold a hearing on the matter as soon as possible.
The announcement comes after the trustee of Delek Real Estate's Series 25 Bond, Adv. Guy Gissin, asked the court last Thursday to appoint an attorney as an observer with no management rights in the company as liquidator in the event that the debt settlement proposed by the company does not conclude in a binding settlement.
In last night's notice to the TASE, Delek Real Estate said that in view of the petition for liquidation filed on April 5 by the trustee of the Series 25 Bond, and in view of the new conditions and the company's cannot meet its obligations due to its financial condition, "there is no alternative but to petition the court and notify it that the company has withdrawn its petition to convene a creditors meeting, and that it will not oppose the petition for liquidation filed by the trustee of the Series 25 Bond." This is the case despite the adverse consequences liable to result by a petition for liquidation to the bondholders.
Delek Real Estate bond debt totals NIS 2.1 billion: NIS 150 million for the Series D Bond, NIS 580 million for the Series E Bond, and NIS 1.4 billion for the Series 25 Bond.
Delek Real Estate's share price fell 16% in morning trading today to NIS 0.15, giving a market cap of NIS 56 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 10, 2012
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