As IDB Holding Corp. Ltd. (TASE:IDBH) bondholders convene their fateful meeting in Tel Aviv this morning, there were dramatic developments last night at the company's headquarters in Azrieli Towers. Bondholder representatives met until the early hours of the morning with IDB's management headed by Nochi Dankner to reach the outline of a new debt settlement.
The sides have not yet reached an agreement but are expected to do so this morning after a number of understandings were achieved that reduced the gap between the parties. Dankner's new Argentinean partner Eduardo Elsztain, who was yesterday appointed deputy chairman of IDB Development Corp. Ltd., will probably inject capital directly into IDB Development.
The amount to be injected will be at least $50 million, in addition to the $25 million that he has already invested.
Regarding the quantity of shares that IDB Holdings' creditors will receive, a proposal has been raised in which they would be given 50% of the shares in IDB Developments and the NIS 185 million cash, which is in the company's coffers.
Published by Globes [online], Israel business news - www.globes-online.com - on July 3, 2013
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