Baran Group (TASE: BRAN; Nasdaq: BRANF) wrote off NIS 16.5 million of Better Place's debt. Baran said in its financial report for 2012 that the write-off was one of the main reasons for its net loss of NIS 10 million for the fourth quarter, after posting a net profit in each of the preceding three quarters of the year. Baran was one of the contractors for Better Place's battery change stations from 2011 through the end of 2012.
Baran said that the project totaled NIS 160 million. Under the contract with Better Place, the parties agreed that NIS 54 million would not be paid concurrently, but would be financed by Baran and repaid by Better Place after four years. Baran said that Better Place is making the project's latest installments, including linkage and interest payments, but, nonetheless, "The company's board of directors and management are closely and continuously monitoring Better Place's ability to meet its current commitments."
Baran added, "Following the publication of the financial report of Israel Corporation (TASE: ILCO) on March 21, 2013, and in the auditor's opinion appended to it, which states, among other things, that there is strong doubt about Better Place's ability to continue operating as a going concern, the board of directors accepted management's position that the current value of the money that the company expects to receive from Better Place will total NIS 38 million of the NIS 54 million. In an extraordinary step, Better Place CFO Alan Gelman was invited to a Baran board meeting in late March."
Published by Globes [online], Israel business news - www.globes-online.com - on April 2, 2013
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