Africa-Israel Investments (TASE: AFIL) has altered its stance on a debt arrangement. The company, which previously presented a plan that did not include a cash injection from controlling shareholder Lev Leviev, has adopted a different approach. Prof. Amir Barnea, who is advising the company, presented an outline debt arrangement today that includes a NIS 600 million cash injection from Leviev, and dilution of his stake from 74% to 51%, with the bondholders receiving 36% of the shares.
This afternoon, the bondholders' representatives met at the offices of Adv. Meir Lipa, their legal representative, and were presented with Barnea's proposal. Africa-Israel's management, headed by CEO Izzy Cohen and deputy chairman Nadav Grinshpon, who represents Leviev, gave their agreement in principle to theprposal.
In response to the proposal, one institutional investor said, "The proposal amounts to an opening offer, and it needs to be improved. The amount Leviev is injecting is too low, and the calculation of the subsidiaries in unacceptable." The bondholders' representative body will meet tomorrow to discuss the proposal.
Published by Globes [online], Israel business news - www.globes-online.com - on October 22, 2009
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