Mizrahi Tefahot Bank (TASE:MZTF), which heads the lending syndicate to HOT Telecommunication Systems Ltd. (TASE: HOT), is blocking the attempt to delist the company. In a notice to the TASE today, HOT said that it had received a copy of a letter from the syndicate to HOT's parent company Cool Holdings Ltd., which stated, "implementation of the merger deal and delisting of the company's shares from trading constitute a fundamental breach of the loan agreement of November 28, 2011, between Cool and the lenders."
Patrick Drahi controls HOT through Cool Holdings. In the notice, HOT adds, "In view of what is stated in the letter, Cool is asked to freeze the approval procedures for the merger, to ensure that the deal will not be approved or implemented before reaching an agreement that is satisfactory to the lenders. Cool notified the company that rejects outright the lenders' argument raised in the letter, and that it would take all necessary legal action to prevent the lenders' attempt to frustrate the merger."
HOT's bondholders also oppose the delisting of the company, because Drahi, who owns 69.2% of HOT, had not directly consulted with them.
Published by Globes [online], Israel business news - www.globes-online.com - on October 18, 2012
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