The banks will offer Nochi Dankner an 18-month moratorium on debt payments by IDB Development Corporation, which he controls, in exchange for an additional 2% on the debt's interest rate during this period, and phantom options on 20% of the company's shares.
The banks will submit their proposal for a settlement with Dankner, which they are now discussing, by the end of the week. The proposal will come amid Dankner's talks with the bondholders on debt settlements in IDB Holding Corp. Ltd. (TASE:IDBH) and IDB Development. The bondholders want to seize control of the companies.
IDB Development owes NIS 4 billion to its bondholders and NIS 2 billion to Bank Hapoalim (TASE: POLI) (the biggest creditor), Bank Leumi (TASE: LUMI), Israel Discount Bank (TASE: DSCT), Mizrahi Tefahot Bank (TASE:MZTF), HSBC Holding plc (LSE: HSBA; HKSE: 005; NYSE, Paris: HBC), and BNP Paribas SA (Euronext: BNP).
Published by Globes [online], Israel business news - www.globes-online.com - on June 25, 2013
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