There was substantial progress last night in talks between IDB Holding Corp. Ltd. (TASE:IDBH) and its bondholders. IDB and the bondholders - Psagot Investment House Ltd., Excellence Investments Ltd. (TASE: EXCE), Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), and Gilad Provident Funds - will hold talks to reach an agreement to strengthen IDB's financial base by the end of April 2013. If the parties reach an agreement by this date, IDB and Ganden Investments Ltd. (through which Nochi Dankner controls IDB) undertake that a further NIS 60 million will be invested in IDB by the end of May 2013. In addition, the bonds' trustees and representatives will not take any legal action against IDB before April 30, 2013.
Yesterday, IDB held intensive negotiations with its bondholders, which hold NIS 1.73 billion in bond debt, in order to reach an agreement which will prevent the matter from going to court. The parties disagree over the upcoming NIS 65 million interest payment on the Series D bond due this month.
IDB initially proposed to the bondholders to postpone the payment until the end of March 2013. During this period, if Eduardo Elsztain exercises his option to invest $75 million in Ganden (through which Nochi Dankner controls IDB), Ganden will use part of the proceeds to inject NIS 120 million into IDB.
Published by Globes [online], Israel business news - www.globes-online.com - on December 12, 2012
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