After ending yesterday's hearing with a "Happy New Year", Tel Aviv District Court Judge Eitan Orenstin this morning announced his ruling in the case of IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner. The ruling has three main points.
First, the court approved the sale of 32% of Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) to JT Capital Management Ltd. of Hong Kong at a company value of NIS 4.6 billion.
Second, the court accepted IDB Holding's petition for an extension to submit a debt settlement for the company, and set a timetable for submitting new proposals.
Third, the court did not at this stage approve the proposal made by the IDB Holding bondholders representative together with Eduardo Elsztain, and will hear future proposals before the creditors.
Judge Orenstin said that he had decided to allow a reasonable postponement to give time for the submission of a debt settlement on the basis of the expected NIS 826 million investment in IDB by Alexander Granovsky, primarily because of his ruling on August 18 that if money was deposited with a trustee, as was done, he would grant a reasonable extension. "IDB Holding acted in accordance with my ruling in word and deed, relied on it, and its expectation that the court would grant an extension should be respected," the judge wrote.
Judge Orenstin says that the stay will only benefit the creditors, and provides an opening for competition in submitting offers. "We cannot rule out that more bids will be submitted, which will maximize the proceeds for the creditors," he stated.
Judge Orenstin ruled that a debt settlement for IDB Holding will be filed by noon on October 20. The court's expert will examine the proposals by October 30. A bondholders meeting will be scheduled by November 14, and the court will hold a hearing at 9 am on November 25.
Published by Globes [online], Israel business news - www.globes-online.com - on August 26, 2013
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