The Israel Securities Authority has come out on the side of the Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) Series 9 bondholders. In response to Africa-Israel's statement of defense submitted to the Tel Aviv District Court yesterday, the Securities Authority today said that the final vote on the company's debt settlement must be made by the holders of each bond series separately.
Africa-Israel has been trying to have a single vote on the debt settlement by all the bondholders.
In a statement to the Tel Aviv District Court, the Securities Authority said, "To the extent that the honorable court concludes that the answer to the question whether the company is insolvent is not unequivocal, or if it is negative, the Securities Authority believes that it is necessary to accept the approval of each bond series separately by a special majority of both the series as a whole and among the holders of it, who have no material conflict of interests with regard to the holding in that bond series."
In its statement of defense, Africa-Israel said that if the debt settlement was rejected, the company was liable to attach a going concern warning to its financial report for the third quarter, and could default and become insolvent.
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2009
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