Banks seek foreclosure of Tshuva, Dankner's Plaza Las Vegas

In response to today's announcement, market sources increasingly believe that Nochi Dankner and Yitzhak Tshuva will give up on the project.

Nochi Dankner and Yitzhak Tshuva's gamble on the Plaza Casino and Hotel project on the Las Vegas Strip has failed. Dankner-controlled IDB Development Corp. Ltd. and its subsidiary Property and Building Ltd. (TASE: PTBL), which jointly own half of the project, today notified the TASE that, following the lack of agreement with the lenders on a loan settlement, the lenders have petitioned the courts to approve the foreclosure of the land for the project.

Tshuva's private company Elad Properties owns the other half of the Plaza project. Earlier this month, the companies announced that they were seeking a debt settlement with the banking syndicate that financed the purchase of the 34.5-acre site for the project. The companies owe the banking syndicate $620 million.

IDB Development and Property and Building said that they will each write off NIS 90 million on the project in their financial reports for the third quarter of 2012.

In response to today's announcement, market sources increasingly believe that Dankner and Tshuva will give up on the project.

Published by Globes [online], Israel business news - www.globes-online.com - on November 14, 2012

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

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