The liquidation order issued last week by Judge Eitan Orenstein for Eurocom Communications, formerly controlled by Shaul Elovitch, took effect today. As reported by "Globes," the creditor banks decided against a quick sale of Internet Gold Ltd. (Nasdaq: IGLD; TASE:IGLD), the controlling shareholder in Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) and Eurocom's main asset, choosing instead to wait for the liquidation order to take effect. Eurocom owes the banks NIS 960 million, plus another NIS 200 million to other creditors.
Banking sources said that in the first stage, no dramatic change is due to take place in the sale of the group's assets. Three lawyers representing the creditor banks (Israel Discount Bank (TASE: DSCT), Bank Hapoalim (TASE: POLI), and First International Bank of Israel (TASE: FTIN)), who have hitherto been observers, will be appointed special managers, and will have to submit an initial report to the court on May 30. In addition, Adv. Hagai Ullman, who represents the consortium of creditors of Eurocom Real Estate, headed by Mizrahi Tefahot Bank (TASE:MZTF), will become the receiver for the shares of Spacecom Satellite Communications Ltd. (TASE:SCC), which are attached in favor of the consortium. Ullman will also submit an initial report at the end of the month and every six months thereafter.
Not many assets are left in the Eurocom group to liquidate. This week, a deal was reached for the sale of Eurocom's shares in energy company Enlight Renewable Energy and a deal was reached a month ago whereby the group's operating companies will be sold to the HY Electronics group. The only assets left for sale are Internet Gold, Spacecom, and holdings in the Midtown Tel Aviv real estate project.
If progress is not achieved in the banks' negotiations with the Saidoff group or with Kidan Dahari and Yaron Adiv, who have already filed bids for the acquisition of Internet Gold, an official auction will probably be conducted for the sale of the shares. The sale will be more organized that the process that has been conducted in recent months. The banks are also considering an injection of up to NIS 150 million into Internet Gold in order to bolster its liquidity and remove time pressure for the sale.
Published by Globes [online], Israel business news - www.globes-online.com - on May 3, 2018
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