Leon Recanati to bondholders: I cannot invest more money in the company.
Gmul Investment Co. Ltd. (TASE: GMUL), controlled by Leon Recanati, notified the Tel Aviv Stock Exchange (TASE) yesterday that it had bought back NIS 13 million of its bonds. The purchase was made at NIS 0.27 per bond.
The bond's full maturity value is NIS 48 million, which means that the company can report a capital gain of NIS 35 million on the buyback.
At a bondholders meeting last week, Recanati said, "I cannot invest more money in the company. The financial crisis has affected my other assets, too." He added, "I will do whatever I can to improve the situation. You and I are in the same boat. I've lost money together with all of you; we made a bad deal. I've made any number of deals in my lifetime, and this was the worst deal of my life."
Published by Globes [online], Israel business news - www.globes-online.com - on December 16, 2008
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