Delek Group bondholders issue ultimatum

Yitzhak Tshuva

The bondholders are threatening to demand immediate repayment unless the company raises NIS 400 million.

Delek Group Ltd. (TASE: DLEKG) bondholders have issued an ultimatum to the company and its controlling shareholder Yitzhak Tshuva. Sources inform "Globes" that the bondholders' representative gave them until today to raise at least NIS 400 million to stabilize the company's financial position.

The trustees of seven of Delek Group's bond series added to the agenda of a bondholders meeting due to be held at 16:00 today an item calling for immediate repayment of the company's bond debt.

On April 5, the bondholders' representative wrote to Delek Group setting out demands for strengthening the company's finances when it was being required to make early repayments of loans and provide more collateral by secured creditors such as Citi and Bank Leumi.

No substantial progress has been made on the demand other than a draft proposal by Delek Goup's financial adviser, consultancy Giza Singer Even, for cash injections of NIS 130 million in 2020 and 2021. The proposal has yet to be approved by the Delek Group board.

Delek Group owes its bondholders NIS 6 billion, and has bank debt of over NIS 2 billion.

More than half the bond debt is in the 31 series, which has a nominal value of NIS 3.1 billion, and which closed last week at NIS 0.345, giving a yield to maturity of 60%.

Published by Globes, Israel business news - en.globes.co.il - on April 26, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Yitzhak Tshuva
Yitzhak Tshuva
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