The meeting of Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) bondholders with the company's management and chairman Shimon Yitzhaki has ended. The outline settlement presented (an 87% haircut, 15% for Mordechay (Motti) Zisser, a no lawsuits agreement) was put together in advance with the foreign funds invested in Elbit Imaging bonds, and was put to the trustees and bondholder representatives for them to rubber stamp what had been agreed over their heads.

A presentation at the meeting showed that the company's assets were worth some NIS 3 billion. After deducting bond debt of NIS 300 million and bank debt of another NIS 300 million, the company remains with shareholders' equity of NIS 2.4 billion.

The company's management said at the meeting that Zisser was the ultimate real estate developer, that he had unique knowledge of real estate, and that if he left, everything would collapse.

Adv. Asaf Baram of the Baram, Sluky and Co. law firm said, "I don't wish to comment on what was said at the meeting. I don't think that's appropriate. In general, my view is that the company continues to be managed anarchically, subversively, and blatantly illegally, when without permission or authority it creates "settlements" outside the framework of the law, behind the backs of the bond trustees and the bondholders' representatives."

Baram added, "I'd like to believe that Elbit will come to its senses quickly. In any event, we will continue to do what is necessary to protect the right of the bondholders."

Published by Globes [online], Israel business news - www.globes-online.com - on February 28, 2013

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