IDB series 14 bondholders add to Elsztain's woes

Eduardo Elsztain  photo: Eyal Izhar

The bondholders hold a lien on 70% of Discount Investment, Eduardo Elsztain's main Israeli investment vehicle, and now seek immediate repayment.

In a further blow to Eduardo Elsztain's attempts to retain control of the IDB Development-Discount Investment group, IDB Development's series 14 bondholders decided last week to present the debt to them for immediate repayment.

The series 14 bondholders have a lien on 70% of the shares in Discount Investment, and the upshot of their decision is that the bond trustee will act to foreclose on the shares. This decision follows a similar decision by the unsecured series 9 bondholders earlier last week.

Discount Investment holds controlling stakes in real estate company Property & Building, telecommunications carrier Cellcom, citrus grower and exporter Mehadrin, high-tech investment company Elron, and Epsilon Investment House. Without Discount Investment, Elsztain, who through his companies IRSA and Dolphin has spent some NIS 3 billion trying to stabilize the IDB Development-Discount Investment group, will be left with no substantial activity in Israel.

Published by Globes, Israel business news - en.globes.co.il - on September 21, 2020

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

Eduardo Elsztain  photo: Eyal Izhar
Eduardo Elsztain photo: Eyal Izhar
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