The Bank of Israel's Banking Supervision Department is in talks with the Israel Securities Authority to obtain information about IDB Holding Corp. Ltd. (TASE:IDBH), controlled by chairman Nochi Dankner, in view of concerns that the company will append a going concern warning from its auditors in its financial report for the second quarter of 2012. The company is due to publish its financials by the end of August. The Bank of Israel is examining the consequences of a going concern warning by IDB on its lender banks.
IDB Holding's bond debt totaled NIS 2 billion at the end of March, compared with NIS 485 million in cash and cash equivalents. Its shareholders' equity deficit was NIS 634 million. IDB needs at least NIS 375 million to meet its commitments through the end of 2013: NIS 350 million in bond payments and NIS 99 million in bank loan payments.
Yesterday, in response to a letter from bondholder Psagot Investment House Ltd. to the three trustees of IDB's bonds, IDB said in a notice to the TASE, "Consideration of the issue of a going concern warning, as well as consideration of any other matter relevant to the company's financial statements, is subject to the preparation and completion of the company's financial statements for the second quarter of 2012, and to the approval and decisions of the company's authorized organs."
IDB Holding's share price fell a further 6.2% by early afternoon today to NIS 15.81, giving a market cap of NIS 630 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 21, 2012
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