The deadline set by Bank Hapoalim (TASE: POLI) for Beny Steinmetz's Scorpio Real Estate Ltd. (TASE: SCRP.B1) passed today, and the bank has started to set the ball rolling. Sources inform "Globes" that Hapoalim has rejected Steinmetz's request for to delay an application for immediate repayment of NIS 355 million that Scorpio owes the bank. Talks continue between the two sides, but if they fail, the bank intends to sue Steinmetz personally for the debt.
The institutions to which Scorpio owes money have also not remained indifferent to events. The representatives of the bondholders to whom Scorpio owes NIS 570 million held a conference call this afternoon. A source at a large institution told "Globes" today that "if Hapoalim demands immediate repayment, we will too."
As revealed by "Globes" last week, Steinmetz is prepared to make an immediate $100 million injection into Scorpio in order to facilitate a debt arrangement with the bondholders, but the bank has rejected this proposal.
The negotiations are being conducted on Steinmetz's behalf by Scorpio chairman David Granot, who was formerly CEO of First International Bank of Israel (TASE: FTIN1;FTIN5). Bank Hapoalim is represented by deputy CEO and head of the Business Division Shimon Gal. At Steinmetz's request, Adv. Ram Caspi is mediating between the parties.
"Beny Steinmetz made generous offers, above and beyond what he had to," associates of the businessman said today, commenting on the talks with Bank Hapoalim. "$100 million out of $250 million is proportionately far more than what Leviev gave in the Africa-Israel debt arrangement."
Published by Globes [online], Israel business news - www.globes-online.com - on May 20, 2010
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