Sources inform ''Globes'' that Supervisor of Capital Markets, Insurance and Savings Yadin Antebi has ordered Eli Elezra to sell the life insurance business of ILD Insurance Co. (TASE: ILDH), which he controls through Elezra Holdings Ltd. (TASE:ALZR.B1. Antebi cited problems of ILD Insurance's parent company, ILD Insurance Holdings Ltd. (TASE:ILDH), in redeeming its bonds that matured at the end of 2008.
Antebi warned that the Ministry of Finance Capital Markets, Insurance and Savings Division is dissatisfied with the fact that ILD Insurance and IDL Holdings are liable to default on the liabilities.
Antebi's order to ILD Insurance to sell its life insurance portfolio is an extraordinary application of his regulatory authority to ban a company and its owners from a range of activities. He is apparently concerned that ILD Holdings will not meet it liabilities.
ILD Insurance confirmed the report, saying in response, "The Supervisor of Insurance has contacted the company, demanding to see how we're prepared to pay the bonds, including the sale of company operations. Since then, the company has settled the issue of payment of the bonds, and the letter is no longer relevant. ILD Insurance's financial standing is good, and is no different from that of any other insurance company."
ILD Holdings' bondholders agreed to postpone a NIS 60 million bond principle payment by one month to the beginning of February, because of the delay in Elezra's sale of 38% of vehicle leasing company Albar Ltd. for NIS 39 million. ILD Holdings is negotiating with its bondholders to spread out the bond payments.
ILD Insurance closed at NIS 0.51 on Thursday, giving a market cap of NIS 58.6 million. ILD Holdings closed at NIS 5.16, giving a market cap of NIS 75.4 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 4, 2009
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