Tel Aviv District Court Judge Eitan Orenstin today postponed, for the second time, the preliminary meeting of IDB Holding Corp. Ltd. (TASE:IDBH) creditors by one week, until August 18. The votes by IDB's bondholder at the meeting will decide their preferred debt settlement for Nochi Dankner's company.
Judge Orenstin stated, "I am aware of the technical difficulties indicated by the trustees and to the concern that if an agreement is reached for the sale of Clal Insurance, as well as their claim that if a debt settlement is proposed by the company, which for now they and others believe is not 'ready', it will not be possible to meet the timetable to convene the meeting on August 18, 2013… The court's doors are open to the trustees."
Judge Orenstin added that he was prepared to further postpone the creditors' meeting, but be kept the final meeting, scheduled for August 21, and the August 25 date for his decision on the case.
The trustees asked for the postponement on Wednesday evening, in order to give the parties enough time to organize in view of pending developments, beginning with the sale of the controlling interest in Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) by IDB Development Corporation, and Dankner's efforts to secure and investor for IDB Holdings.
This is a group of investors headed by New York haredi (ultra-orthodox) David Waldler, BGI Investments (1961) Ltd. (TASE: BGI), controlled by Chabad-supporting oligarch Alexander Granovsky, and old-new investor Eduardo Elsztain. The goal of the negotiations is a NIS 800 million capital injection into IDB, on the basis of Dankner's proposed debt settlement, but it is not clear whether the investors have the wherewithal.
Published by Globes [online], Israel business news - www.globes-online.com - on August 8, 2013
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