On Friday, it was reported that Yizhak Tshuva and the bondholders of Delek Real Estate Ltd. (TASE: DLKR) had reached a debt settlement. Tshuva agreed to grant an upside of 2-2.5% of Delek Group Ltd's (TASE: DLEKG)shares if their value exceeds a certain threshold - in other words, the bondholders will share in future profits from natural gas. The bondholders will also receive a NIS 53 million cash payment, rather than the previously agreed NIS 40 million.
In a notice to the TASE today, Delek Real Estate said, "Following media reports, the company wishes to clarify that no settlement has been reached with representatives of the bondholders, and that as of the date of this report, there has been no change in the circumstances on the basis of which the company announced that it has no intention of opposing the petition for liquidation."
Meanwhile, The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5), a subsidiary of Tshuva-controlled Delek Group, has announced that it will exercise its option to immediately acquire 25% of Elad Israel Residence Ltd. from Delek Real Estate.
Phoenix has a full lien on Elad Israel Residence, which it claims includes the rights through the option. Phoenix is demanding that the proceeds it receives from exercising the option should defray Delek Real Estate's debt to it.
The balance of Phoenix's loan to Delek Real Estate was NIS 69 million at the end of March.
Delek Real Estate's share price rose 15.9% in morning trading on the TASE to NIS 0.21, giving a market cap of NIS 80 million. Phoenix's share price rose 1.2% to NIS 9.60, giving a market cap of NIS 2.1 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on April 22, 2012
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