After waiting nearly two years, Ampal-American Israel Corporation bondholders have been offered a meager return from the company worth only 5% of the company's huge NIS 1 billion debt in other words an unprecedented 95% haircut on the debt.
Bondholder trustees of Yosef Maiman's investment company have reported the payments worth NIS 50 million that will soon be transferred to the bondholders NIS 33 million for Series C bonds and NIS 20 million for Series B bonds.
The source of the current distribution is likely to be the last and is a guarantee previously deposited by Ampal for the two bonds series. The guarantee for the Series A bonds is even weaker and they will not receive anything of this distribution.
Bondholders also gave their agreement to transfer $3 million to the US liquidator appointed by the company - half the amount of the loan in order to collect additional amounts for them.
Bondholders also await an international arbitration decision against the Egyptian government regarding the natural gas company East Mediterranean Gas (EMG), which was Ampal's main asset. The company collapsed after the Egyptian revolution in 2011 which led to a halt in gas deliveries to Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on August 5, 2014
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