Gilat Satellite Networks CFO Yoav Leibovitch said yesterday that Gilat was not negotiating with Global Village Telecom (GVT) for an extension of the redemption date of bonds issued by GVT to Gilat.
The "Yediot Ahronot" Hebrew-language daily reports that Global Village Telecom (GVT), in which Discount Investment Corporation holds 14%, states in its third quarter financial reports that it is negotiating to extend the period of its convertible notes by another two years - until April 2004. GVT issued $40 million of these two-year bonds to Gilat Satellite Networks (Nasdaq: GILTF) in April 2000. The bonds are convertible into GVT shares. The GVT reports are attached to the reports published by Discount Investment.
On the other hand, Gilat Satellite Networks CFO Yoav Leibovitch yesterday stated that Gilat Satellites was not conducting negotiations with GVT on extending the repayment date for the bonds. Leibovitch said, "We have not yet considered the matter."
The bonds represent a considerable amount of cash for Gilat Satellite, which the company needs to finance its current and financial operations.
Published by Israel's Business Arena on December 4, 2001