Delek Group Ltd. (TASE: DLEKG) failed yesterday in its attempt to postpone its equity offering by two months. Preliminary results show that both the alternatives for postponing the offering proposed by Delek to the bondholders failed to receive the minimum majority of 50%.
Unless the picture changes after the final results are published, Delek, controlled by Yitzhak Tshuva, will be left with just one week to complete raising NIS 163 million, as it previously committed to bondholders. According to the trustee notes of the seven series of Delek Group's bonds, Delek is obligated to raise the sum by July 31, otherwise it will be a breach of the terms of the trustee note, and Delek will be required to repay the full amount of its debt immediately.
Raising the money in the equity offering is part of the commitments that Delek took upon itself in May within the framework of an agreement signed with the bondholders. In addition to the NIS 300 million which must be raised by the end of July (Delek raised NIS 137 million in May), Delek must raise a further NIS 100 million by December 15 and NIS 50 million by April 8, 2021.
Delek Group has a debt of NIS 6 billion to bondholders and hundreds of millions of shekels more to various banks.
Published by Globes, Israel business news - en.globes.co.il - on July 23, 2020
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