Delek Real Estate Ltd. (TASE: DLKR) bondholders rejected the company's debt settlement offer on Saturday night. They refuse to negotiation with Delek Real Estate's controlling shareholder, Yitzhak Tshuva, until he carries out what they says is his promise to inject NIS 22 million into the company.
The TASE suspended trading in Delek Real Estate's shares this morning, after the company announced that it will publish an important announcement.
On Thursday, "Globes" reported that Delek Real Estate was offering bondholders a new NIS 1.2 billion bond in exchange for the NIS 2.1 billion in bonds that they hold, plus converting debt into equity for 60-70% of the company's shares. Tshuva, who owns 51% of the company, would inject NIS 200-300 million into it.
Delek Real Estate's share price rose 7.9% to NIS 0.20, before the TASE suspended trading, giving a market cap of NIS 74 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2011
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