Tel Aviv District Court Judge Eitan Orenstin today approved the NIS 2.5 billion debt settlement for Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) - the largest debt settlement in Israeli history.
In his ruling, Judge Orenstin wrote, "The objections do not constitute a counterweight against the settlement, which has been approved by a majority of the creditors. I saw no reason to accept the argument of Bank Leumi (TASE: LUMI). In my opinion, its classification as an unsecured creditor is in line with the law. I approve the debt settlement and the allotment of shares to Bank Hapoalim (TASE: POLI). I hereby order the company to execute the settlement and register the shares in the names of the creditors. The company will convene a general shareholders meeting to select a new management."
Under the debt settlement, which was approved by a majority of Elbit Imaging's creditors, NIS 1.8 billion in debt will be written off (70% of the total debt), and 95% of its bonds will be converted into shares. Liens will be placed on these shares in favor of Bank Leumi and Elbit Imaging's bondholders. In addition, two new bonds, totaling NIS 666 million, will be issued. Elbit Imaging's officers will not receive any options, and its former controlling shareholder, Mordechay Zisser, will not be exempt from future claims, in contrast to the executives.
Published by Globes [online], Israel business news - www.globes-online.com - on January 1, 2014
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