Africa-Israel controlling shareholder Lev Leviev increased his collateral by NIS 100 million to Israel's five big banks.
Last Thursday, Africa-Israel Investments Ltd. (TASE:AFIL) controlling shareholder Lev Leviev increased his collateral by NIS 100 million to Israel's five big banks, which lent NIS 2 billion to Memorand Management Ltd., his private company through which he controls Africa-Israel. The transfer was made after one of the creditors, Mizrahi Tefahot Bank (TASE:MZTF), threatened to immediately recall its loan if Leviev did not transfer the money within three business days.
Last week, "Globes" revealed that Memorand was seeking a new debt settlement with its creditor banks. Under the proposal, Leviev would bring forwards repayment of the debt, in exchange for forgiving 15% of the debt, amounting to NIS 300 million. Until a new agreement was reached, Leviev declined to increase the collateral by the NIS 100 million. It is not clear whether the proposed new settlement has been withdrawn, or if Leviev and the banks will try to reach a new agreement with a smaller debt reduction.
Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2012
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