The Nochi Dankner-Alexander Granovsky consortium has raised its bid for IDB Holding Corp. Ltd. (TASE:IDBH) from NIS 900 million to NIS 1.15 billion, after replacing at the last minute Neto Malinda Trading Ltd. (TASE: NTML), controlled by David Ezra, with the Nakash brothers, the owner of Arkia Airlines Ltd.
Two investment bids for IDB were filed with the Tel Aviv District Court today as part of the unofficial tender managed by Judge Eitan Orenstin for the sale of the controlling interest in the company. The Dankner-Granovsky consortium filed one bid, and the Eduardo Elsztain-Motti Ben-Moshe consortium filed the other. Both consortia increased the amounts of capital that they will inject into the company and its creditors.
There was a sense of satisfaction among IDB's bondholders, trustees, and court-appointed experts in view of the higher bids. "Competition is today's big winner. The company's creditors will have the last word, as it seems that the latest round of improvements has maximized the added value for them," said a trustee today.
IDB Holding has been insolvent for over a year. Its debts total NIS 2 billion, mostly to bondholders, who will suffer a massive write-off on the debt's adjusted value.
The Dankner-Granovsky consortium is offering to pay IDB's bondholders NIS 318-450 million, inject NIS 200 million into IDB Holding's subsidiary IDB Development Corporation, and deposit NIS 500 million in an escrow account, which will be injected into IDB Development if Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) is not sold by June 2014. In addition, at the trustees' demand, the consortium has promised not make the debt settlement subject to approval by the Supervisor of Insurance and the Ministry of Communications.
Published by Globes [online], Israel business news - www.globes-online.com - on November 26, 2013
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