IDB Holding Corp. Ltd. (TASE:IDBH) controlling shareholder chairman Nochi Dankner has offered the company's creditors an improved debt settlement offer, which includes a NIS 600 million write-off (haircut) by the bondholders and the banks, in exchange for a NIS 300 million capital injection into the company and an allotment of 10% of its shares to the bondholders and lien on half of the shares of subsidiary IDB Development Corporation.
Under the improved offer, Dankner increased the capital injection into IDB and a shorter rescheduling of bond payments. In his previous offer, which angered the IDB's bondholders, Dankner offered to reschedule the bond payments by 5-15 years and for Eduardo Elzstain to immediately inject NIS 180 million into the company. Elzstain, who invested in Ganden Investments Ltd., through with Dankner controls IDB, injected NIS 40 million into IDB as part of a rights issue in November 2012.
In its previous offer, IDB sought to replace its current five bond series, which totaled NIS 1.75 billion at the end of September 2012, with three new bonds of NIS 650 million each and bearing 2-4% annual interest. IDB is also offering the bondholders a phantom option to let bondholders share in future upside, if the aggregate value of the company's main holdings Shufersal Ltd. (TASE:SAE), Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), Makhteshim Agan Industries Ltd., Property and Building Ltd. (TASE: PTBL), Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), and Koor Industries Ltd. (TASE:KOR)'s stake in Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ) should rise by more than 50%.
IDB also owes NIS 300 million to Bank Leumi (TASE: LUMI) and Credit Suisse.
Published by Globes [online], Israel business news - www.globes-online.com - on January 23, 2013
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