Judge Varda Alshech said she will only make a decision on December 20th.
A tense court hearing today on the status of Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) was adjourned with the judge calling on both sides to continue discussions. Judge Varda Alshech said she will only make a decision on December 20th.
Alshech heard from those present, representatives of the sides to a debt restructuring deal , and told them that she will not make any decision on the matter today. She sent them back to another round of talks in order to reach an agreement, before she has to make a decision.
Top Africa-Israel's executives, led by CEO Izzy Cohen and vice chairman Nadav Grinshpon, are present, along with the company's lawyers, including Uri Bergman and Pinchas Rubin. Other key individuals who participated in the complex debt settlement negotiations arrived, including special consultant Prof. Amir Barnea, Adv. Guy Gissin who represents the Series 9 bondholders, and Adv. Lipa Meir representing the holders of the company's other bond series. The presence of so many key figures in the case testifies to the importance of today's hearing.
Investors seeking their money back have also come to the court. One investor told "Globes" just before the hearing began at 9:00 am, "Leviev should sell his gold faucets and give us our money back. My husband will retire in two years. What will he get after we invested in Africa-Israel? Each tile in Leviev's London house equals an entire salary."
It remains to be seen how the hearing will affect Africa-Israel's debt settlement. If Alshech rules that the company is insolvent, a single bondholders meeting will convene, which will probably overwhelmingly vote in favor of the settlement. Such a ruling will lift the cloud of uncertainty over the company, and pave the way for a settlement.
The Series 9 bondholders oppose this format of a vote, but they account for only 7% of all bondholders, and would probably not be able to prevent a vote in favor of the settlement by a large majority.
Published by Globes [online], Israel business news - www.globes-online.com - on December 2, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009