Delek Real Estate Ltd. (TASE: DLKR) bondholders say that the debt settlement proposed by controlling shareholder Yitzhak Tshuva is the ultimate evasion of his responsibility to them. They add that his conduct is unacceptable and will have repercussions on his other businesses and on Delek Real Estate officers who are also directors.
The bondholders met today, on the basis of a summons from last week, and irrespective of yesterday's debt settlement offer. Delek Real Estate's Series 25 Bond representative slammed Tshuva's conduct for the way he informed the bondholders. In a statement some of the bonholders said, "Delek Real Estate's astonishing notice to the TASE is in effect the letter the company received from Barnea Financial Consulting, whose recommendations are not binding at all. In any event, the recommendations are, on the face of it, a dry and disappointing offer. Yitzhak Tshuva has evaded all responsibility. It should be remembered that, just in August, he claimed in an official notice to the TASE that any debt settlement that would be offered to the bondholders would not include a debt write-off, but only a rescheduling. At the moment of truth, the camouflage has been removed and it turns out that the controlling shareholder is denying his obligations."
Another bondholder said, "The disappointment over Tshuva's conduct is manifold, given the expectations that a businessman of his stature, who raised himself by his bootstraps and based his growth on raising billions of shekels from small savers, would not turn his back on these hundreds of thousands of savers at the moment of truth. The man who knew how to talk straight to the public and based his relations with the capital market on trust has disappeared from the public and left pension savers in a hopeless situation."
Tshuva told "Globes", "Nothing has changed. I intend to continue helping Delek Real Estate, and to behave differently from other controlling shareholder who neglected the companies they established."
Published by Globes [online], Israel business news - www.globes-online.com - on November 21, 2011
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