Africa-Israel chairman Lev Leviev's private company Memorand today reached a deal with its largest creditor.
Another step has been taken toward the complex and hoped-for bond settlement by Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY). Chairman Lev Leviev's private company Memorand Management (1998) Ltd. today reached a deal with its largest creditor, Bank Hapoalim (TASE: POLI). Memorand owes the bank NIS 2 billion, and sources inform ''Globes'' that Leviev will inject NIS 400-500 million into the company and strengthen the collateral as demanded by the bank.
The deal with Bank Hapoalim effectively concludes Leviev's negotiations with the Israeli banks. Last week, he reached a deal with Memorand's other creditor banks. Under that deal, he will inject NIS 200 million into the company.
Leviev will inject up to NIS 750 million in Africa-Israel over the next four years as part of the debt settlement with the institutional investors. When the capital injection into Memorand is added, he will have to dip into his pocket to the tune of NIS 1.35-1.45 billion.
Africa-Israel's share rose 6.3% by early afternoon to NIS 42.60.
Published by Globes [online], Israel business news - www.globes-online.com - on November 16, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009
Eran Peer and Adi Ben-Israel