Nochi Dankner is in talks to reach a settlement on a $310 million in bridge loans taken by IDB Holding Corp. Ltd. (TASE:IDBH) units IDB Development Corporation and its subsidiary Property and Building Ltd. (TASE: PTBL) to buy their share of the land for the Plaza casino and hotel in Las Vegas. Dankner owns 50% of the project, and Yitzhak Tshuva's Elad Properties owns the other half.
IDB Development and Property and Building's loans are due to be repaid in August 2012. Each company's loan is $155 million, out of the total loan of $620 million.
In a notice to the TASE today, Property and Building said, "At this stage, the lenders have agreed that the operating expenses on the project in 2012 will not be cause for immediate repayment of the loan, which is secured by a lien on the land, before April 1, 2012."
Property and Building's share price fell 0.1% in morning trading today to NIS 160, giving a market cap of NIS 1 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on February 19, 2012
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