The capital is to guarantee the company's Series 25 bond, and the bondholders have agreed to postpone the upcoming payment on it.
Yitzhak Tshuva will inject an additional NIS 50 million into Delek Real Estate Ltd. (TASE: DLKR) to guarantee the company's Series 25 bond, and the bondholders have agreed to postpone the upcoming payment on it, until the company published its financial report for the second quarter.
Tshuva is selling his 55% holding in Delek Real Estate to a US private equity fund, which will inject NIS 500 million into the company. A condition of the sale is for Delek Real Estate to reach a debt settlement with its bondholders that will not include a reduction in the bond's principal.
Last week, Delek Real Estate suspended all interest payments to its credits after the bondholders rejected the 21-day postponement on the upcoming NIS 390 million payment of the principal on the bond.
Delek Real Estate's share price rose 15.6% before trading was suspended ahead of the announcement to NIS 0.23, giving a market cap of NIS 90 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 28, 2011
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