Delek Real Estate Ltd. (TASE: DLKR) controlling shareholder Yitzhak Tshuva today notified the company's bondholders that he is prepared to inject more capital into the company as part of a debt settlement, on top of the NIS 300 million he has already promised. He did not state how much more money he would inject, but the statement indicates that he has bowed to public pressure.
Tshuva's proposed debt settlement included a NIS 900 million haircut for Delek Real Estate's bondholders, who are owed over NIS 2 billion.
In the statement, Tshuva said, "Over the past few days, I reviewed the structure proposed for Delek Real Estate by Prof. Amir Barnea, and I heard and listened to the criticism. Over the past three years, I have responded favorably to the company's requests for financial assistance, in the belief that this would succeed in putting it on a new path. I am still prepared to continue helping the company to get through this period and rebuild it, and to improve the structure for it proposed by Prof. Barnea.
"I am prepared to increase the amount of my participation in the settlement structure that will be formulated, and inject additional amounts in the company beyond the amounts stated in Barnea's proposal, as part of a structure agreed to by all the parties."
Delek Real Estate's share price rose 13.5% on the news to NIS 0.23, giving a market cap of NIS 85 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 1, 2011
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