Haaretz owes the banks more than NIS 200 million.
"This is not a good time to sell because the market is not in a good state but the financial situation of the Haaretz Group probably gives them no choice," a senior source in the Internet market told "Globes" today in the wake of Haaretz decision to put up its 32.4% stake in Internet portal Walla Communications Ltd. (TASE: WALA) for sale.
Sources inform "Globes" that Haaretz is attempting to improve its financial relations following its relatively high leverage, and that the group owes more than NIS 200 million to the banks, mainly to the country's two largest banks - Bank Leumi (TASE:LUMI) and Bank Hapoalim (LSE: 80OA; TASE: POLI). The sale of Walla! probably stems from pressure by the banks on Haaretz to reduce its debt.
Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2009
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