Two days after Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) Series 24 bondholders withdrew from a joint representation of all bondholders (except those of Series 9, whose maturity date passed), they have asked Judge Varda Alshech to delay her decision on the company's insolvency.

The bondholders asked for a delay in order to give the sides more time to negotiate. They also proposed an alternative draft for a debt deal. Their version includes a NIS 550 million upfront cash payment.

On Sunday, the judge is due to announce her decision as to whether or not Africa Israel is insolvent. This has significant implications for the debt restructuring deal. If she rules that the company is insolvent, as Africa-Israel claims, then the company's request for one general meeting with bondholders will be authorized, and the path to a debt deal seems relatively smooth.

If that is not the ruling, then the Series 9 bondholders will be a step closer to tripping up the debt restructuring agreement reached with institutional investors.

The NIS 320 million series 24 bonds were issued in 2007.

Published by Globes [online], Israel business news - www.globes-online.com - on December 17, 2009

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