Armored car manufacturer Hatehof Ltd. (TASE:THF) early yesterday morning notified its bondholders that it could not pay the semiannual interest payment on its bonds. "We will do everything possible to pay the interest as soon as possible, and no later than December 30," said the company.
Hatehof's bond price fell 11.3% yesterday to NIS 0.70, and was unchanged by midday today.
Hatahof has NIS 34 million in CPI-linked convertible bonds, which bear 6% annual interest. The interest is paid twice a year, in May and November. The principal is scheduled to be repaid in four equal annual installments beginning in November 2012.
Hatahof's factory is located in the Tziporit industrial zone outside Upper Nazareth. The company has 400 employees.
Hatehof's share price rose 1.2% by midday today to NIS 0.86, giving a market cap of NIS 43 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 1, 2010
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