Arko Holdings Ltd. (TASE: ARKO) (formerly Leader-Tech) controlled by Arie Kotler and Morris Willner, will extend a $6.25 million loan to US real state developer Tarragon Corporation (Nasdaq: TARR), which yesterday filed for Chapter 11 bankruptcy.
The loan will carry 12% annual interest and will be repayable in monthly installments.
Tarragon yesterday filed for Chapter 11 bankruptcy in a New Jersey court so that it can carry out a reorganization. The repayment of the loan will start from when the reorganization plan is approved, or not later than July 2009.
Tarragon is engaged in residential real estate development in the north east of the US as well as in Florida, Texas and Tennessee, and owns 7,000 apartments for leasing in 30 assets. The company has an equity deficit of $212 million and debts of $960 million.
Tarragon's shares are traded on Nasdaq at a price of $0.0427 per share. The share has lost 98% of its value over the past year with a market cap of $1.23 million and assets worth $838 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 13, 2009
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