Koor Industries Ltd. (NYSE: KOR) ("Koor" or the "Company") announced today that it and wholly owned Telrad Networks Ltd. ("Telrad") have received a $50.4 million loan repayment from Nortel Networks Israel.
Koor received $37.8 million, and Telrad the balance of $12.6 million. The loan, given to Nortel Networks Israel in August 2000, was originally due for repayment on August 31, 2003. As part of the overall transaction, Koor has agreed to waive any interest charges arising from early repayment.
Koor and Telrad, who together hold 28% of Nortel Networks Israel, also expect to exercise, on October 31, 2003 or earlier, their Put Option to sell their holding in Nortel Networks Israel to Nortel Networks for approximately $3.9 million.
Following completion of both these transactions Koor and Telrad will have received approximately $54.3 million in cash.
Jonathan Kolber, Chief Executive Officer of Koor Industries, and Chairman of Telrad Networks, said today "Nortel Networks Israel has been a strong partner for many years and we continue to work together to identify new avenues of cooperation, both in development and marketing."
Kolber added "These proceeds will assists both Koor and Telrad in further reducing their bank debt, while increasing their financial flexibility to seek new opportunities"
Published by Globes [online] - www.globes.co.il - on May 4, 2003