Three days after Bank Hapoalim (TASE: POLI) demanded payment in full of its NIS 355 million in loans to Scorpio Real Estate Ltd. (TASE: SCRP.B1), Beny Steinmetz, who owns the company has decided to appease his creditors and defend his good name.

Sources inform "Globes" that Steinmetz is ready to give personal guarantees for $100 million of the real estate company's debts to the bank, and immediately redeem $100 million to bondholders (out of a total debt of $150 million).

Sources close to Steinmetz said, "An injustice has been done to Beny and his good name had been harmed." The sources were referring to reports that Steinmetz was wriggling out of his personal responsibility for Scorpio's debts.

Scorpio has encountered difficulties because of the state of the real estate market in Eastern Europe.

Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2010

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