Habas HZ Investments Ltd. (TASE: HABS) announced on Friday that it had obtained a €1.3 million loan from Mayer Cars and Trucks Ltd. unit Mayer (Kesher) Real Estate Ltd., its partner in subsidiary Habas Star BV. The 90-day loan bears an annual interest rate of 12%. Mayer Cars and Trucks is owned by Jacob Shachar and Israel Kass.
Habas said in its announcement: "As of the date of this report, Habas Tulip BV continues to meet all its financial covenants under its financing agreement with the banks."
Last week, Habas asked for a debt settlement, stating, "In the past few days, the company has faced serious difficulty in realizing its proposed business plans… especially its financing plan." Habas requires cash to increase its collateral to the banks which financed its holding in subsidiary Nieuwe Steen Investments NV (NSI) (AEX:NISTI)."
Habas is a real estate developer, which also owns a portfolio of income-producing properties in Western Europe, mainly through Dutch REIT NSI, in which it owns a 20.5% stake through Habas Tulip. At the end of September 2012, Habas booked the investment at a value of €167 million (NIS 844 million), but the current value of the stake is €74 million (NIS 355 million). Habas therefore has a paper loss of €93 million (NIS 490 million) on the investment, compared with an accounting shareholders' equity of NIS 160 million at the end of September 2012.
In view of the financial distress of Habas, controlled by Hertzel Habas, Mayer Cars and Trucks, its partner in Habas Star, has lent the company €1.3 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 17, 2013
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