Is private equity firm Markstone Capital Partners experiencing liquidity problems? From a notification released today by Phenomenal Holdings, it emerges that a NIS 15 million payment of bond principal and interest will not be paid on the due date, which is today. Phenomenal Holdings is a subsidiary through which Markstone holds 24% of Psagot Investment House Ltd..
Under the trust deed, Phenomenal Holdings can postpone payment by 30 days. Sources close to Markstone, which is run by Ron Lubash and Amir Kess, claim that reason for the delay is technical.
Capital market sources do not rule out the possibility that Markstone will shortly attempt to carry out a deal in its financial holdings (the remains of collapsed investment house Prisma), which, besides the stake in Psagot, also consist of 45% of Excellence's mutual funds.
In addition, "Globes" has learned that Markstone is counting on a dividend from Psagot in order to meet the payment, but that, as far as is known, the Psagot board is not due to meet in the near future to discuss a dividend distribution.
An agreement exists between the controlling shareholder in Psagot, Apax Partners, and Markstone, under which Psagot will distribute 85% of its profits as a dividend, but this is subject to approval by the Psagot board of directors.
Markstone stated that "Notice has been given of a technical delay in the payment date, and, under the agreement, as required, the payment will be made in full within 30 days."
Published by Globes [online], Israel business news - www.globes-online.com - on August 1, 2012
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