New foreign bidders enter Israir race

Israir

Swiss investment bank Wadiah Capital and Australian company Amrock Aviation have jointly made the highest offer so far.

Swiss investment bank Wadiah Capital (51%) and Australian company Amrock Aviation (49%) have submitted a joint bid to buy Israir 'as is' for NIS 170 million cash, a NIS 7 million bonus for the airline's employees after the closing, a waiver of IDB Development's NIS 16.3 million debt to the company , and general undertaking to invest in it. The bidders are represented by Adv. Yoram Ra'avad. The bid is the highest that has been received for the airline.

At a meeting held earlier today, before the Australian bid was published, attended by holders of IDB Development's Series 9 bonds, the bids for Israir were discussed, including the recommendation of the bond trustee to accept the bid by Rami Levy through BGI Investments, it emerged that the company intended to improve its bid by NIS 10 million.

Representatives of Knafaim Global Leasing who joined the discussion, held via Zoom, tried to persuade the bondholders of the superiority of their bid, which combines shares and a cash payment with an offer to enhance Israir's fleet with two planes belonging to Knafaim Global Leasing.

Presumably the other bidders, among them Dor Alon and the Fortissimo private equity firm, have not yet said their last word and may submit new bids.

Some participants in today's meeting expressed doubt whether it was correct to sell Israir at all, since the airline is enjoying positive momentum and there is confidence in its CEO Uri Sirkis, whom the bondholders believe should continue to lead the company after it is sold.

This Monday, a final vote will take place on the future of the sale of Israir, when it will become clear whether the bondholders will go with the trustee's recommendation in favor of Rami Levy or will ask the court to consider another buyer, against the recommendation of the trustee whom the court itself appointed.

Published by Globes, Israel business news - en.globes.co.il - on December 3, 2020

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

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