Hapoalim collects NIS 125m Steimatzky debt

The bank foreclosed liens and guarantees on assets of the bookseller's owner, Markstone.

Sources inform ''Globes'' that Bank Hapoalim (TASE: POLI) has collected NIS 125 million in debt owed by bookseller Steimatzky Group Ltd. by foreclosing liens and guarantees. The apparent aggressive act was coordinated with the bookstore chain. Following the foreclosure, the company's outstanding debt to the bank is NIS 10-20 million.

In exchange for Steimatzky's original debt to Bank Hapoalim of almost NIS 140 million, the bank had a lien on other holdings by Steimatzky's owner, Markstone Capital Partners Group LLC, such as shares in Netafim Ltd. and nylon and plastics manufacturer Nilit Ltd. The bank also has a current lien on company assets and Markstone guarantees worth NIS 40 million. Although the repayment greatly reduces the company's debt, it also reduces its income, which was used to repay the debt.

On Wednesday, Markstone injected NIS 8 million into Steimatzky and Bank Hapoalim extended it NIS 4 million in credit, which should give the retailer a few months breathing room until a more general solution is found to its liquidity problems.

Published by Globes [online], Israel business news - www.globes-online.com - on April 10, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018