The due date for the principal repayment to series D bondholders of NIS 85million falls next month.
Less than six months after Shlomo Eisenberg acquired control of Ocif Investments and Development Ltd. (TASE: OCIF) from Arcadi Gaydamak, the real estate company today reported that it cannot meet the principal repayment to its bondholders on the due date. However, it will pay interest on time (5.2%) amounting to NIS 6 million.
The payment totaling NIS 85 million to Series D bondholders is due to be paid next month. The company reported that, "It does not yet have the means to realize its assets which were meant for the next payment of principal, and it intends to call an extraordinary bondholders meeting to discuss approving postponement of the principal's payment until September 20."
Ocif also needs approval of the Series D trustees, Union Bank of Israel (TASE: UNON), for postponing the payment, although there is no doubt that today's dramatic announcement will stir up all the bondholders, some of whom are already talking militantly and demanding immediate payment. Ocif's current liabilities at the end of 2008 stood at NIS 1.5 billion and its long-term liabilities totaled NIS 1.4 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 27, 2009
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