Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) is counterattacking its Series 9 bondholders. The company yesterday announced, "The general structure of the debt settlement reached by the company on October 30, with the bondholders of 12 bond series, except for the Series 9 bond, offers an equitable and fair solution, and Africa-Israel may not give preference to the Series 9 bond over the other bond series."
Africa-Israel added, "If the Series 9 bondholders believe that another solution is proper, then this solution should be derived from a different distribution of the package given by Africa-Israel, and it should obtain the consent of the representative body that represents all the other bond series. The compensation package offered by Africa-Israel in the framework of the settlement is a marketable package, which can be exercised quickly, and even immediately. It is therefore clear that the struggle by the Series 9 bond is unjustified."
Over the weekend, bondholders of the two short-term bonds - Series 14 and 17 bonds - met in separate meetings and the majority decided to reject two proposals to appoint independent financial experts.
72% of the Series 17 bondholders voted against of appointing a financial expert, and 28% voted in favor.
The Series 14 bondholders also decided by a 53% majority to reject the appointment of a financial expert for the bond series, and 55% also voted to reject a proposal to appoint a separate representative from the representative body for all the bond series.
After Africa-Israel reached the debt settlement with the bondholders' representative body on October 30, the Series 9, 14, and 17 bondholders threatened to quit the representative body and to try to reject the settlement.
Last week, Africa-Israel paid only the interest, but not the principal on the Series 9 bond, which matured. The Series 14 and 17 bonds mature in mid-2010.
Africa-Israel's share rose 2.2% in early trading today to NIS 41.
Published by Globes [online], Israel business news - www.globes-online.com - on November 16, 2009
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