Mediation fails at Africa-Israel

Moti Ben-Moshe  photo: Anya Bosman

Africa-Israel's bondholders are renewing their application to foreclose on Moti Ben-Moshe's guarantee, and seek alternative buyers for the company.

The mediation process between Africa-Israel Investments Ltd.'s (TASE:AFIL) bondholders and Moti Ben-Moshe has failed. A document presented to the court this morning by Ad. Guy Gissin and Adv. Ophir Naor, who represent the trustees of the three bond series (26-28) concerned, states that "no agreement was reached" between the sides, and that the hearing on the bondholders' application to foreclose on the NIS 100 million deposit that Moti Ben-Moshe put up to guarantee the debt settlement should therefore be reopened.

Gissin and Naor write that a bondholders meeting held last Thursday unanimously rejected changes that Ben-Moshe sought to introduce into the creditors' arrangement that was approved by the creditors and the court in September-October 2018.

Gissin and Naor state that, at the request of the bondholders, the bond trustees, in consultation with Africa-Israel's management, are soliciting alternative offers to buy the company or its assets. Market sources say that the bondholders will first seek to sell Africa-Israel's 35.5% holding in the company that operates the Road 6 toll road to Shikun & Binui Holdings Ltd. (TASE: SKBN), and the 55.9% controlling stake in Africa-Israel Properties, or to sell separately the latter's businesses in Europe and Israel. Later, the holdings in contractor Danya Cebus and Africa-Israel Residences (74%) will be put up for sale.

Published by Globes, Israel business news - en.globes.co.il - on February 10, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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Moti Ben-Moshe  photo: Anya Bosman
Moti Ben-Moshe photo: Anya Bosman
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