Shaya Boymelgreen-controlled Boymelgreen Capital Ltd. (TASE:BMGN) attached a going concern warning to its financial report for 2009, due to a shareholders' equity deficit of NIS 668 million. The company lost NIS 483 million in 2009, after losing NIS 437 million in 2008.
Boymelgreen Capital owes Mizrahi Tefahot Bank (TASE:MZTF) NIS 720 million and has a bond debt of NIS 452 million. Shaya Boymelgreen signed a debt settlement with its bondholders and Mizrahi Tefahot Bank but has not met its commitments to provide liens and guarantees.
Boymelgreen Capital predicts a capital shortfall of NIS 281 million in 2010 and NIS 199 million in 2011, unless the debt settlement is implemented.
Following the sale of its stake in Azorim Tourism Ltd. and the old Assuta compound in north Tel Aviv, Boymelgreen Capital's main asset is its 64% stake in Azorim Investment, Development and Construction Ltd. (TASE: AZRM), which Giza Singer Even valued at NIS 750 million in March, compared with its market cap of NIS 778 million.
Azorim posted a loss of NIS 103 million on the sale of its stake in Azorim Tourism and a loss of NIS 220 million on the distribution of bonds is subsidiary Lagna Holdings Ltd. (TASE;LGNA) to bondholders. Azorim's net loss was NIS 338 million in 2009, following its loss of NIS 412 million in 2008.
Despite its financial troubles, Azorim paid chairman Yoram Turbowicz a salary of NIS 5.3 million for a 70% position. Salaries to other executives were equally generous.
Shaya Boymelgreen owns 89.8% of Boymelgreen Capital, whose share was unchanged today at NIS 9.50, giving a market cap of NIS 38.4 million. Azorim's share price fell 5.2% to NIS 21.14.
Published by Globes [online], Israel business news - www.globes-online.com - on April 1, 2010
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