Mordechay (Motti) Zisser has failed to meet the deadline for making a loan repayment to Bank Hapoalim (TASE: POLI). The controlling shareholder in real estate company Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) was due to pay NIS 80 million by today, but the money was not forthcoming.
Sources close to Zisser explained that he wanted to transfer the money this week, but that he also wanted to reach a new agreement with the bank on the general terms of his debt. It is believed that Zisser wants Bank Hapoalim to reschedule the debt, and is using the current payment as a lever to obtain his demands from the bank.
Shares in Elbit Imaging fell 6.4% today, after rocketing 90% last week. The share rice has fallen 60% so far this year.
Sources at Bank Hapoalim expressed anger at Zisser, saying, "all his promises come to nothing, and nothing he says materializes." Zisser promised a few weeks ago that he would transfer the money by the end of the month, that is, by today.
The bank intends to go ahead as planned, and to realize the collateral Dutch company Bipart, which owns hotels in Belgium and Holland. The bank said in response to the report that it would not discuss its customers' affairs in the press.
Elbit Imaging bonds are traded at junk yields of up to 33%.
Published by Globes [online], Israel business news - www.globes-online.com - on October 31, 2011
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