Sources inform ''Globes'' that Delek Real Estate Ltd. (TASE: DLKR) Series 5 bondholders have decided to postpone a decision on immediate repayment of the bond until September 18, giving controlling shareholder Yitzhak Tshuva a respite. The Series 5 bondholders are demanding that Tshuva provide equivalent guarantees to the ones that he provided the Series 25 bondholders.
The Series 5 bond is a long-term bond and the Series 25 bond is a short-term bond. The Series 5 bond is Delek Real Estate's largest debt, amounting to NIS 1.4 billion. The principle is due to be repaid in monthly installments in 2013-19 and the interest payments are repaid in two installments a year, in February and August. The company did not pay the interest payment due last month.
Meanwhile, Delek Real Estate is in talks to finalize the sale of Thsuva's 55% stake in the company to US private equity fund CIM Group Inc.. Under the letter of intent signed by the companies in August, CIM will inject NIS 500 million into Delek Real Estate in the form of a subordinate owners' loan. Tshuva has agreed to provide a NIS 100 million owners' loan.
Delek Real Estate's share price rose 3.7% in morning trading to NIS 0.195, giving a market cap of NIS 73 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 8, 2011
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