The restructuring of the Elovitch Group has been postponed indefinitely. The measure, which was to have kicked off tomorrow with a bond issue by Internet Gold Golden Lines Ltd. (Nasdaq: IGLD; TASE:IGLD), has been postponed because of the investigation against Shaul Elovitch and the companies in his group.
An overhaul of the group's ownership structure was planned, with Internet Gold being delisted from the Tel Aviv Stock Exchange (TASE). According to the plan, the company was going to liquidate its public debt through repayment, with the funding for the measure, which included an offer to purchase in the next stage, coming from the issuing of a new bond series, backed by shares in B Communications Ltd. (Nasdaq:BCOM; TASE: BCOM).
The capital market expressed concern that developments in the Elovitch Group would lead the banking system to exert pressure on the group, especially Eurocom Real Estate, which has recently been under pressure from Mizrahi Tefahot Bank (TASE:MZTF) to repay a loan previously taken from a consortium of lenders managed by the bank. Not long ago, Eurocom Group sold its shares in Spacecom Satellite Communications Ltd. (TASE:SCC) in order to repay a large part of the loan granted to Eurocom Real Estate, which bears 7.5% interest.
The Elovitch Group has also indefinitely postpone a NIS 250-300 million bond issue for Eurocom Real Estate as part of its debt restructuring.
Published by Globes [online], Israel Business News - www.globes-online.com - on June 20, 2017
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