IDB Holding Corp. Ltd. (TASE:IDBH) controlled by Nochi Dankner, and its subsidiary, IDB Development Corporation published their financial statements for the first quarter of 2013 on Friday night. IDB Holding states in its financials that Bank Leumi (TASE: LUMI) has called in the loan to Ganden Holdings Ltd., through which Dankner controls IDB.
According to IDB, Bank Leumi has decided to call in Ganden's NIS 450 million loan, "and reserves the right to take legal action to collect the debt." Ganden pledged 30.7% of IDB Holding's shares as collateral in favor of Bank Leumi on the loan.
IDB adds that an additional 7% of IDB Holding's shares held by Ganden are attached to Mizrahi Tefahot Bank (TASE:MZTF) as collateral and 5.62% are attached to Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ). Neither of these banks has yet announced that they will exercise the collateral.
Ganden said in response, "Nochi Dankner and his partners in Ganden are working to strengthen the company at several levels simultaneously. This action includes talks to raise capital from additional investors for Ganden, and continuing the unceasing efforts to strengthen and stabilize Ganden's main asset - shares in IDB Holding."
IDB Holding's net profit fell to NIS 130 million for the first quarter from NIS 315 million for the corresponding quarter. The company posted a net loss of NIS 947 million in 2012 as a whole. IDB Development's net profit fell to NIS 159 million for the first quarter from NIS 342 million for the corresponding quarter. It posted a net loss of NIS 733 million in 2012 as a whole.
Published by Globes [online], Israel business news - www.globes-online.com - on June 2, 2013
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