At the order of the court, meetings took place yesterday for the first time between the management of IDB Development and the bondholders representative body, which seeks to impose a debt settlement that will give it control of the company.
Despite the short timetable dictated by Tel Aviv District Court Judge Eitan Orenstein, is seems that still today there is a large gap between the sides, who have reached no understandings. The bondholders' representatives and the company are therefore expected to ask the court for an extension to submit their responses to the judge, probably until Tuesday afternoon.
This means that it will again be up to Judge Orenstein. Yesterday he warned that in the absence of agreement between the parties, he would have to dictate terms for a debt arrangement in the company.
However, it emerged in yesterday's hearing that the judge does not wish to be the one to transfer control of IDB Holding Corp. Ltd. (TASE:IDBH) from Nochi Dankner to the bondholders. It may therefore be that he will attempt to postpone the decision on the matter and to find an interim solution, in the form of the appointment of a professional outsider to supervise the running of the company.
A meeting yesterday evening between Nochi Dankner and Jeremy Blank, Israeli representative of York Capital, which is the largest holder of IDB Development bonds, ended shortly after it began, without any understanding being reached.
Published by Globes [online], Israel business news - www.globes-online.com - on April 29, 2013
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