Bondholders of Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) Series 17 Bond were left disappointed with the company's management did not bother to send a representative to the their meeting this morning.
A bondholder said, "When they issued the bond, they were all over me for me to invest, but now there is no one to talk to." <
At today's meeting, a bitter argument erupted between Adv. Ophir Naor, who represents short-term bondholders, and Adv. Noam Sharon, who represents long-term bondholders, after Sharon refused to answer Naor's questions. Sharon said, "We sent a request to the company to send a representative to today's bondholders' meeting. I am not being questioned by you."
Naor replied, "Do you know what happened in the talks between the bondholders' representatives and the company's managers? We asked for a representative to come, but no one came today. The trustee has attended some meetings, why isn't he updating us?"
Africa-Israel bond trustee BDO Ziv Haft accountant Giora Luftig said, "We were asked not to attend meetings between the representatives and the company's managers."
Naor replied, "We want answers about conflicts of interests, and we're not getting them. We send you letters, and you don’t reply. This meeting was also held because there was no choice." p>Meanwhile, the bondholders' representatives are continuing their efforts to move forward in the negotiations on a debt settlement with Africa-Israel's management. The bondholders initially demanded that Africa-Israel chairman Lev Leviev inject NIS 1 billion into the company, and reduce his holding from the current 74.8% to 45%.
Africa-Israel offered a counter-proposal prepared by Prof. Amir Barnea under which Leviev would inject NIS 600 million into the company and reduce his holding to 51%. The bondholders' representatives then amended their demand to a NIS 800 million capital injection and for Leviev to reduce his holding to 54.4%.
Published by Globes [online], Israel business news - www.globes-online.com - on October 28, 2009
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