IDB Holding Corp. Ltd. (TASE:IDBH), control of which was taken from Nochi Dankner in January after ten years, published its financial report for the fourth quarter and full year of 2013 last night. For several quarters, the company has been in talks on a debt settlement with its bondholders, and its auditors have attached a going concern warning to the financial statements of both IDB Holding and its subsidiary, IDB Development Corporation.
IDB, which was managed by CEO Haim Gavrieli in 2013, and is now controlled by Moti Ben-Moshe and Eduardo Elsztain, narrowed its net loss by 52% to NIS 451 million in 2013 from NIS 947 million in 2012. The fourth quarter net loss was NIS 93 million, compared with a net profit of NIS 23 million for the corresponding quarter of 2013. The total net loss narrowed to NIS 787 million in 2013 from NIS 1.02 billion in 2012.
The results include a NIS 195 million write-down in 2013 and a NIS 117 million gain the fourth quarter, which was transferred to trustees following the transfer of control in Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) until its sale.
As of the publication date of the financial report, there is a lien on the NIS 191 million balance of IDB Holding's cash in favor of the debt settlement.
IDB Holdings and IDB Development spent NIS 38 million in 2013 in consultancy fees related to the debt settlement (NIS 23 million by IDB Holding and NIS 15 million by IDB Development).
The salary cost of former IDB chairman Nochi Dankner (who served until January 6, 2014) was NIS 1.9 million in 2013, all of which was his basic salary. The salary cost of Gavrieli was NIS 1.8 million, and the salary cost of CFO Eyal Solganik was NIS 1.7 million. IDB's three highest-paid executives earned NIS 5.4 million even as the company was insolvent and in negotiations on a debt settlement during the entire year.
Published by Globes [online], Israel business news - www.globes-online.com - on April 1, 2014
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