Digal Investment and Holdings Ltd. (TASE: DIGL) bondholders met today to discuss offers to acquire control of the company and its flagship resident project in Jerusalem, Nof Zion. No vote was taken in the four-hour meeting, with the bondholders deciding to hold a vote in a few days.
Sources at the meeting said that a few dozen people were present, and that the meeting was very stormy, and even included threats. The bondholders had already voted in favor of an offer for the project by American-Palestinian investor Bashar Al-Masri, which was considerably higher than the other offers.
Also present at the meeting were representatives of religious groups, which purchased a few Digal bonds since Al-Masri's identity was disclosed, in order to vote in the bondholders meeting. They are infuriated by the sale of the east Jerusalem project.
Since Al-Masri's offer is the best, most of the bondholders support it, including DS Apex Holdings Ltd. (TASE:DSAP), Psagot Investment House Ltd., and Excellence Investments Ltd. (TASE: EXCE). However, due to the difficulties in reaching a settlement to the satisfaction of all the parties, the bondholders will probably ask the court to order a debt settlement pursuant to Article 350 of the Companies Law.
Financially troubled Digal has missed NIS 30 million in payments on its NIS 60 million bond debt. The company lost NIS 12 million on NIS 7 million revenue in the first half of 2010, after losing NIS 17 million in 2009 as a whole. A going concern warning was attached to its latest financial reports.
Published by Globes [online], Israel business news - www.globes-online.com - on December 28, 2010
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