The debt settlement for Israel Petrochemical Enterprises has been approved, thus paving the way for David Federmann to gain control of Bazan.
The debt settlement for Israel Petrochemical Enterprises (TASE: PTCH) has been approved by the required majority of its bondholders, thus paving the way for David Federmann to gain control of Bazan (Oil Refineries) (TASE: ORL).
Israel Petrochemical Enterprises was in effect insolvent and was traded today on the Tel Aviv Stock Exchange with a market cap of NIS 4.2 million. The company's main asset is its share in the controlling core of Bazan with Israel Corporation (TASE: ILCO), controlled by Idan Ofer. Ofer's attempts to sell his stake in the controlling core to Hagag Group Real Estate Development Ltd. (TASE: HGG) led to the forming of the new debt settlement arrangements, which have now been approved with the purpose of exercising the right of refusal granted to Israel Petrochemical Enterprises.
The significance of the move is that the current controlling owners of Israel Petrochemical Enterprises, led by David Federmann, are wiping out a billion shekels of its debt, in exchange for the injection of NIS 100 million with new partners, who are on their way to take over Bazan and complete the holding in the controlling core.
Published by Globes, Israel business news - en.globes.co.il - on August 30, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
David Federmann credit: Yediot Ahronot Reuven Schwartz