Eduardo Elsztain has offered IDB Development Corp. (TASE: IDBD) bondholders a debt settlement, which would include a large injection of capital and a haircut for creditors. Sources inform "Globes" that Dolphin, through which Elsztain controls IDB Development and Discount Investment Corporation Ltd. (TASE:DISI) has proposed a draft agreement for strengthening IDB's capital structure. IDB currently owes bondholders NIS 2 billion for three series of bonds. RELATED ARTICLES Going concern warning for Elsztain's IDB Development IDB calls down NIS 40m from Elsztain Elsztain: I invest for my great-grandchildren IDB Development completes NIS 236m bond offering Dolphin's draft proposes injecting NIS 300 million into IDB Development in cash, assets or guarantees with the balance of the assets distributed between the different creditors. After completion of the arrangement, the bondholders would be assured about 70% of the value of their Discount Investment shares through a lien, with the remaining debt repaid or fully erased. At present, there is a lien on 60% of Discount Investment's shares to IDB 14th series bondholders so that the new arrangement would repay the 14th series of bonds. IDB has a debt of NIS 880 million to its 14th series bondholders. Published by Globes, Israel business news - en.globes.co.il - on June 4, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020
