The debt settlemt agreement between Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) and Bank Hapoalim (TASE: POLI) has been signed. Speaking during discussions at the Tel Aviv District Court today, Adv. Giora Erdinast, acting for Bank Hapoalim, said, "The agreement between Bank Hapoalim and the company has been signed and we support the creditors' settlement, and to the best of my understanding there is no contradiction between the settlement with Hapoalim and the debt settlement that the company brought for creditors' approval, and won a majority."
Judge Eitan Orenstin postponed his ruling at the end of today's hearing, although it is believed that he will approve the arrangement in the coming days, mainly because of the support of the receiver.
Control will be taken from Motti Zisser and will pass to the bondholders and Bank Leumi (TASE: LUMI). Acting for Elbit Imaging, Adv. Aharon Michaeli said, "The company is going into the control of the bondholders and Bank Leumi in relative proportions. The board of directors that will be set up will decide by a regular majority the management of the company. The company is not party to any other understanding or arrangement, other than this arrangement."
Zisser himself did not attend the hearing and Adv. Liat Tzarfati said on his behalf that the matter was approved. Erdinast said that Bank Hapoalim would be allocated 3% of Elbit Imaging's shares. This means that Bank Hapoalim, which serves as the receiver of Europe-Israel, Zisser's private company, will hold a 5.5% stake in Elbit Imaging.
This will be one of the largest dest settlements ever approved by the Tel Aviv market.
Published by Globes [online], Israel business news - www.globes-online.com - on December 29, 2013
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