The agreement officially stipulates that if the store is not sold before the end of the year, Co-Op Blue Square will buy it for NIS 100 million.
Co-Op's appointed committee today submitted an agreement between Bank Hapoalim, Co-Op Blue Square Consumer Cooperative Society and Hamashbir Lazarchan to the Tel Aviv District Court.
Co-Op's general manager Doron Cohen said the agreement has four principles:
- Hamashbir Lazarchan will act to sell its Dizengoff Center store.
- If the property is not sold by the end of the year, Co-Op will buy it for NIS 100 million.
- NIS 100 million from the proceeds of the sale will be used to reduce Hamashbir's debt to Bank Hapoalim.
- If Co-Op buys the property, and then sells it during 2003, the net profit from the sale will be equally divided between Co-Op and Hamashbir.
Co-Op owns 80% of Hamashbir, and Co-Op Tzafon owns the rest. Hamashbir's accumulated debts total $100 million, mainly to the banks, especially Bank Hapoalim and Bank Leumi.
Bank Hapoalim has a full lien on Hamashbir's Dizengoff Center store. The property was valued at $35 million at the end of 2001.
Published by Globes [online] - www.globes.co.il - on August 1, 2002