Baran is building Better Place's 51 battery replacement stations in Israel and is anxious about the NIS 54 million it will be owed.
Baran Group (TASE: BRAN) is worried about Better Place Inc's debt to the engineering and infrastructures company. Baran is building Better Place's 51 battery replacement stations in Israel at a cost of NIS 750,000-1.1 million per station. In view of Better Place's deteriorating financial shape, Baran expressed concern in its financial report for the third quarter about Better Place's NIS 54 million debt to the company, about a third of the total cost of the stations' construction.
The agreement with Better Place states that Baran will finance 70% of the cost of the first 20 battery replacement stations under a four-year loan to Better Place.
In the financial report, Baran says, "Due to the size of the debt and the events reported in the media about Better Place, including the replacement (or retirement) of senior company executives, and due to the doubts whether it will meet its business targets, Baran's board of directors is closely monitoring the events."
Baran added that Better Place's debt was under review, per regulations. It said, "As the situation changes, the company's management and board of directors will review it and make the necessary decisions."
Baran reported a net profit of NIS 7 million for the third quarter, 4.5% more than for the corresponding quarter of 2011, and a net profit of NIS 26 million in January-September, 260% more than in the corresponding period of last year.
Published by Globes [online], Israel business news - www.globes-online.com - on November 28, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
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