Ma'ariv Holdings Ltd. (TASE: MARV-M) CFO Udi Shenig estimates the value of the company's printing house at NIS 130-150 million. He gave the estimate at meeting of company bondholders in Tel Aviv at GKH Law Offices.
Shenig's estimate is well above market estimates of the printing house's value. Ma'ariv has begun talks to sell the unit to freesheet "Israel Today".
Shenig said that the negotiations between the papers were "very preliminary". He added, "After the deal, we'll probably continue printing at the premises. The rationale is that printing costs won't be drastically different from what they are now. The value of the printer, on which the banks have a lien, is NIS 130-150 million. The bank gave us a waiver every quarter since the first quarter of 2010, but it stopped giving us the waiver at the beginning of 2011.
"We've entered into negotiations, and there are understandings that at this stage the bank won't demand immediate repayment of the NIS 106 million loan. We're in advanced talks with it to find a solution."
Sources believe that all the proceeds from the sale of the printer, assuming a deal is reached, will be used to cover Ma'ariv's debt to Bank Hapoalim (TASE: POLI).
The bondholders meeting was convened to discuss Ma'ariv's business conditions and ability to repay the debt.
Ma'ariv's share price fell 2.4% in morning trading today to NIS 3.46, giving a market cap of NIS 128 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 22, 2011
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