"I never asked Bank Leumi to write off the debt. Think for yourself what happened there," IDB Holding Corp. Ltd. (TASE:IDBH) controlling shareholder Nochi Dankner in a press conference after today's hearing by Tel Aviv District Court on the petition by IDB Development Corporation's bondholders representative to compel a debt settlement on the company. Dankner puts responsibility for the intention to write off NIS 150 million of the debt owed by Ganden Investments Ltd., though which Dankner controls IDB, squarely on the shoulders of Bank Leumi CEO Rakefet Russak-Aminoach. The bank withdrew the proposed settlement in the face of fierce public criticism.
Dankner appeared in court together with the representative of Eduardo Elsztain, who has pledged to invest $75 million in Ganden. During Sunday's hearing, Judge Eitan Orenstin criticized Dankner's absence.
"Another effort should be made to reach agreement," said Orenstein at the start of today's hearing. He appointed an observer, Adv. Hagai Olman, and economic expert Eyal Gabai, to IDB to oversee the company's conduct. "The appointment does not restrict the continuation of payment," he said, and left the company in Dankner's hands.
Earlier today, IDB Holding's bondholders warned that if the demands of IDB Development's bondholders were met, they would jeopardize Elsztain's investment in IDB Holding.
"The investor has made it clear that the developments undermining the control in IDB Development, or which worsen its condition, would force him to reconsider his intention to make the investment," stated IDB Holding's bondholders in a statement of defense filed with Orenstein. "The bonds trustees and bondholders representative who participated in the meeting received the unequivocal feeling that granting the petitioners' motion for temporary relief, in whole or in part, including the appointment of an officeholder to IDB Development by the court, would put the investment in real jeopardy."
Later today, the court will hold another hearing on the petition by IDB Development's bondholders representative, after Judge Orenstin ordered the parties on Sunday to hold talks to try and reach an agreed solution that would not bring about the collapse of IDB.
Published by Globes [online], Israel business news - www.globes-online.com - on April 30, 2013
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