Tel Aviv District Court Judge Eitan Orenstein has decided to approve a meeting of IDB Holding Corp. Ltd. (TASE:IDBH) creditors today. However, the judge left an opening for IDB controlling shareholder, Nochi Dankner: he must prove the seriousness of the proposed deal with Alexander Granovsky, whereby the latter will invest NIS 826 million in IDB. By August 25, NIS 430 million must be transferred to the company, and a NIS 70 million guarantee must be deposited in the court guarantee against damage that might be caused if the deal does not materialize in full. If this happens, then further creditors meetings will be postponed.
Judge Orenstin dismissed Dankner's petition to postpone the IDB creditors meeting, scheduled for this afternoon. "At this time, the agreement between the investors and the company is only a proposal, which has no substance," said the judge regarding Thursday's agreement between Dankner and BGI Investments (1961) Ltd. (TASE: BGI) controlling shareholder Granovsky to invest in IDB.
Judge Orenstin, however, did not reject IDB's motion out of hand, saying, "I believe that there is no reason to dismiss the petition out of hand, or reject the possibility that the proposal might turn into a binding offer that will benefit the creditors more than the current proposals."
Published by Globes [online], Israel business news - www.globes-online.com - on August 18, 2013
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