The IDB Holding Corp. Ltd. (TASE:IDBH) bondholders representative is expected to reject the latest offer made by chairman and controlling shareholder Nochi Dankner on Saturday night. This strengthens the agreement by bondholders representative - Excellence Investments Ltd. (TASE: EXCE), Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), and Gilad Pension Fund - with the bondholders representative of IDB Development Corporation to wrest control of IDB from Dankner.
IDB Holding's bondholders today voted on the joint debt settlement proposal. As of now, a majority of the financial institutions have voted in favor of it. The results of the vote are due this evening. The vote is non-binding, because the purpose of the bondholders meeting which preceded it last week was to hear the position of the bondholders.
Since Dankner made his new offer on Saturday night, in which he offered IDB Holding's bondholders an improved debt settlement, the two bondholders representatives have been meeting together and separately to discuss it. Eyal Gabay, has attended the meetings as a financial expert on behalf of the court.
Dankner offered the bondholders NIS 540 million when the settlement is signed, of which NIS 375 million will be injected by IDB Holding's shareholders and NIS 165 million will come from the company's cash reserves. Sources inform ''Globes'' that the IDB Holding's bondholders representative has priced Dankner's offer at NIS 970 million, less than the value of Dankner's offer in March, which was priced at NIS 1.04 billion.
The bondholders representative says that there are two important elements in Dankner's offer, which makes it not worthwhile for them. The first is the uncertainty about the investment by Eduardo Elsztain, who has not yet transferred money to IDB Holding's trust account. The second is the going concern warning for subsidiary IDB Development, which raises concern about its ability to meet its commitments.
On Thursday, the parties will meet at the Tel Aviv District Court under Judge Eitan Orenstin for a hearing on the petition filed by IDB Development's bondholders representative to impose a debt settlement on the company.
Published by Globes [online], Israel business news - www.globes-online.com - on June 3, 2013
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