Nochi Dankner is continuing to fight for the control of IDB Holding Corp. Ltd. (TASE:IDBH). On Saturday, he said that if the court disqualifies Moti Ben-Moshe on Sunday because of the report on his sources of capital, the Dankner-Granovsky group will immediately implement the debt settlement on the basis of its proposal.
"If the proposal by Ben-Moshe and Elsztain is not approved, we are determined and ready to immediately implement the debt settlement we offered," said Dankner. "The settlement proposed by our consortium is better than the other proposal by every possible measure. I wish to emphasize particularly our substantial commitment to inject into IDB Development within a short time - even before the settlement is completed - NIS 500 million. This is in contrast to an injection of just NIS 100 million promised by the rival group. A NIS 500 million capital injection within a short time is critical to immediately guarantee IDB Development's cash flow, so that IDB Holding's creditors will not lose their main asset."
In the press statement, Dankner emphasized the latest steps taken by his group. "We're completing the merger of Koor Industries Ltd. (TASE:KOR) and Discount Investment Corporation (TASE: DISI), the sale of Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN), and moving forward to complete the sale of Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS). We are convinced that our investment group and debt settlement proposal are the best for the creditors, who will receive the highest return, and that they are better for the companies and the group's employees. The debt settlement we offered can be implemented quickly, and if Ben-Moshe and Elsztain's proposal is not approved, we are determined and ready to implement it immediately."
Judge Eitan Orenstin will announce his decision on the report on the sources of Ben-Moshe's capital at 1 pm today. Market sources believe that the review team did not reach unequivocal conclusions about the sources of Ben-Moshe's capital, after it reviewed at length the questions raised in the report by investigative auditor Yehuda Barlev, who acted on Dankner's behalf. In the decision on the future control of IDB, Judge Orenstin ruled that the review of the sources of Ben-Moshe's capital was a condition for transferring control of the company to him and Elsztain.
Published by Globes [online], Israel business news - www.globes-online.com - on January 5, 2014
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