Yesterday, the suppliers of the Mega supermarket chain approved the debt arrangement that Mega proposed. The Alon Blue Square group has issued an announcement to this effect.
Most of the suppliers voted in favor of the arrangement, among them Tnuva Food Industries Ltd., Strauss Group Ltd. (TASE:STRS) and Osem Investments Ltd. (controlled by Nestl? SA (SWX:NESN)) (TASE: OSEM). According to a source close to the Alon group, the Central Bottling Company (Coca Cola Israel) voted against.
To anyone present at yesterday's creditors meeting it was fairly clear even before the vote that the debt arrangement proposal would be approved since most of the suppliers are not insured and so failure to approve the arrangement would have meant writing of all of Mega's debts to them, while the arrangement gives some chance that the debts will be paid, at least in part.
This morning, Mega is holding a meeting with its creditor banks, which have demanded that Mega should improve the plan it proposed to them, which calls for rescheduling its bank debt over ten years, with a grace period.
Published by Globes [online], Israel business news - www.globes-online.com - on July 13, 2015
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