The banks are hardening their position against Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) chairman Lev Leviev. Sources inform ''Globes'' that, as a condition for approving, Africa-Israel's debt settlement with its bondholders, Leviev must inject hundreds of millions of shekels into his private company, Memorand Management (1998) Ltd. in order to reduce its debt.
An executive at a mid-sized bank said today, "Leviev has assets to sell, and he is trying."
Memorand owes the banks NIS 3.1 billion, backed by Leviev's personal guarantees, including his shares in Africa-Israel and specific external guarantees. All of Israel's banks are exposed to him.
Negotiations are being held on two separate tracks, and Leviev has met bank executives in the past few days. Bank Hapoalim (TASE: POLI), Africa-Israel's largest creditor, is in talks with Leviev. The four other creditor banks: Bank Leumi (TASE: LUMI), Israel Discount Bank (TASE: DSCT), Mizrahi Tefahot Bank (TASE:MZTF), and First International Bank of Israel (TASE: FTIN1;FTIN5) are holding their own talks.
Sources believe that the banks are demanding that Leviev ante up NIS 800 million, most of which will go to Bank Hapoalim.
Published by Globes [online], Israel business news - www.globes-online.com - on November 8, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009