The representatives of Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) Series 9 bondholders today criticized the representative body of the company's other 12 bond series, saying, "The Giza Singer Even report proves that Africa-Israel can meet all its liabilities. The attempt to contradict the report is based on mistaken facts."
Africa-Israel was due to repay its Series 9 bond on November 10, but only paid the interest on the bond, not the principal. Africa-Israel's management failed to reach an agreement with the Series 9 bondholders, and unilaterally did not pay the principal, when the bond matured.
The Series 9 bondholders are demanding payment of the bond in full, and reject the debt settlement that Africa-Israel reached with the other holders of the other bond series, which have not yet matured. The Series 9 bondholders base their argument on an analysis of Africa-Israel's sources and uses of funds made by Giza Singer Even, which was presented on October 25. The report states that Africa-Israel has the wherewithal to pay all its short mid and long-term creditors.
Giza Singer Even VP Eyal Jedwab said, "Giza examined the comments of Meter (the economic advisor of the representative body of the 12 bond series), and reiterates its confidence about the scenario we presented."
Africa-Israel's share fell 1.5% by early afternoon today to NIS 42.33.
Published by Globes [online], Israel business news - www.globes-online.com - on November 29, 2009
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