Eli Elezra has yielded to bondholders' pressure and cancelled the parties at interest deal between Albar and ILD.
Eli Elezra has yielded to pressure from bondholders of vehicle leasing company Albar Mimunit Services Ltd., in which he has a controlling interest. The company announced the cancellation of a parties at interest deal by which it would have acquired 38% of ILD Insurance Co. (TASE: ILDH), which is also controlled by Elezra, for NIS 39 million. In addition, Albar announced that it had distributed a dividend of NIS 15 million on January 2.
Elezra requested implementing the parties at interest deal in order to meet the bond principal repayments to ILD Insurance amounting to NIS 59 million at the end of December. Albar's bondholders opposed the planned deal claiming it harmed the company and issued a temporary order to prevent the sale. The order resulted in the postponement of the deal, and thus the ILD Insurance bondholders did not receive their payment on time.
Published by Globes [online], Israel business news - www.globes-online.com - on January 11, 2009
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