The representatives of the bondholders of IDB Holding Corp. Ltd. (TASE:IDBH) and its wholly-owned subsidiary IDB Development Corporation will meet today to cooperate over the companies' debts. The representatives previously met to discuss how to maximize their power against Ganden Holdings Ltd., through which Nochi Dankner controls IDB. The bondholders have a common interest because IDB Holding's money and assets are held by IDB Development, and IDB Holding could therefore either facilitate or block any solution with the bondholders.
The meeting between the two companies' bondholder representatives comes after the deadlock between IDB Holding and its bondholders over efforts by IDB Development's bondholders to impose a debt settlement on Dankner, who do not want one.
Today, IDB Development announced that its bonds' trustees will convene a bondholders meeting on February 14 to consider petitioning the courts to initiate proceedings for a debt settlement against Dankner's wishes. The announcement comes months after IDB Development bondholders York Capital Management, Psagot Investment House Ltd., and The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) organized a representative. At the same time, the company has tried to create value by selling subsidiary Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) to sister company Koor Industries Ltd. (TASE:KOR), in a controversial deal.
IDB spokesman said in response, "IDB Development is a sound company, which can meet its long-term commitments. Under the circumstances, we believe that the issues put on the bondholders meeting agenda are superfluous. The company has enough liquid sources to meet all its liabilities through the first quarter of 2014, and it owns outstanding assets which have a value in excess of its liabilities.
"Nonetheless, the company's management is making efforts and examining a range of solutions available to it to create additional liquid sources for paying liabilities from 2014 onwards. We therefore hope that the bondholders' representatives will avoid hasty actions and will act responsibly and pertinently."
Published by Globes [online], Israel business news - www.globes-online.com - on February 7, 2013
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