Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) Series 9 bondholders today rejected the debt settlement proposed by Prof. Amir Barnea. The bondholders' attorney Adv. Guy Gissin announced the rejection at a press conference this morning. The bonds mature on November 10.
Gissin said, "The representatives examined the debt settlement structure proposed by Barnea and decided to reject it. It is the company's obligation to pay its debts to its creditors, and the duty of the company's management and board of directors to give priority to this consideration ahead of all others. I remind you that the request for the debt settlement came from Africa-Israel."
Giza Singer Even VP Eyal Jedwab said, "The scenario we examined found that the company can meet all its obligations. Part of the information we relied on was published on the Tel Aviv Stock Exchange (TASE) and part of it was confidential and obtained from the bondholders. We do not assume a scenario of liquidation, but we also don’t assume business as usual. We examined the sale of assets, but not the ability to recycle debt. The company has had no access to the debt market for two years, which is the source of its problems."
The Series 9 bondholders hired Giza Singer Even to examine Africa-Israel as part of their claim against the company.
Last week, Gissin claimed that Lev Leviev-controlled Africa-Israel had the wherewithal to pay all its obligations through 2013 on time, and would still have NIS 1.4 billion left over.
The Consumer Price Index (CPI) linked Series 9 Bond bears 4.2% annual interest. The outstanding balance on the bond is NIS 550 million.
Africa-Israel's share rose 11.1% in morning trading today to NIS 49.42.
Published by Globes [online], Israel business news - www.globes-online.com - on October 25, 2009
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