Psagot Investment House Ltd. has dropped its opposition to the new Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) debt settlement, paving the way for it to go through.
A senior Psagot executive told "Globes", "Our objections to the settlement ended in court. We will accept what the court decides, and we'll go through with the settlement."
Psagot, under CEO Roy Vermus, opposed the new settlement, reached last night, under which more cash compensation will go to the short-term bondholders. Psagot claimed that the deal was not equitable. Under the new settlement, Africa-Israel's long-term bondholders bear most of the burden of the rescheduled payments, as well as most of the risk.
The executive added, "What the court decides tomorrow - we're in favor. It appears that the road to a deal has been paved."
Tel Aviv District Court Judge Varda Alshech will announce her decision tomorrow and is expected to rule that there will be a single bondholders meeting to approve the debt settlement. The bondholders meeting will probably be held in a few weeks, where the final approval of the debt settlement is expected.
Published by Globes [online], Israel business news - www.globes-online.com - on December 20, 2009
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