This week the same judge is set to approve debt settlements that will see Nochi Dankner and Motti Zisser lose control of the companies they led to collapse IDB Holding Corp. Ltd. (TASE:IDBH) and Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT), respectively. Today Judge Eitan Orenstin heard details of the Elbit Imaging debt settlement and although he delayed his ruling, it is believed he will approve a massive debt settlement in the coming few days, which is worth about NIS 2.5 billion.
According to the debt settlement approved by most of Elbit Imaging's creditors, NIS 1.8 billion will be wiped off the debt, which will be converted to about 95% of Elbit Imaging's shares (that will be transferred to the bondholders and Bank Leumi (TASE: LUMI)), and two series of bonds will be issued worth NIS 666 million. Elbit Imaging's executives will receive no options, and Zisser himself will not be exempt from future suits, unlike most of the other company executives.
This will be the largest debt wipe out in the history of the Tel Aviv market and will be sure to adversely affect pension fund performances.
Published by Globes [online], Israel business news - www.globes-online.com - on December 29, 2013
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