Delek Real Estate Ltd. (TASE: DLKR) controlling shareholder Yitzhak Tshuva is increasing his personal contribution to the company's debt settlement by NIS 18 million, in order to solve disputes between its unsecured creditors over the distribution of compensation offered in the settlement. The bondholders are due to vote on the settlement on Tuesday.
Delek Real Estate's Series 5 bondholders claim that the money that Tshuva is offering should be distributed on the basis of each bond's debt, but the Series 25 bondholders argue priority should be given to the bonds with the shorter maturities.
Under the debt settlement, Delek Real Estate will issue two new bond series, one totaling NIS 657 million (up from NIS 650 million set earlier), and the second series totaling NIS 91 million (up from NIS 18 million set earlier).
Last week, the representatives of Delek Real Estate's three bond series reached an agreement on the new debt settlement proposal, which includes a 65% reduction on the company's NIS 2.15 billion debt. The outstanding debt on the Series 5 bond is NIS 1.4 billion, the debt on the Series 25 bond is NIS 612 million, and the debt on the Series 4 bond is NIS 157 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 9, 2012
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