Former IDB Holding Corp. Ltd. (TASE:IDBH) controlling shareholder Nochi Dankner is in talks with six banks on an agreement to settle his personal debts. Hebrew daily "Yediot Ahronot" reports today that, among other things, he has notified the banks that he will put his house in Herzliya Pituah up for sale at an asking price of NIS 45 million. "The decision to sell the house was not easy for him," a source familiar with the matter said.
Dankner is in talks with six banks - Bank Hapoalim (TASE: POLI), Bank Leumi (TASE: LUMI), Mizrahi Tefahot Bank (TASE:MZTF), Union Bank of Israel (TASE: UNON), and Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ) - to settle his personal debt, which is estimated at NIS 485 million. He owes Bank Hapoalim an estimated NIS 140 million and Bank Leumi NIS 125 million. These figures do not include the debts of Ganden Investments Ltd. to Bank Leumi and Mizrahi Tefahot Bank, which have a lien on Dankner's shares in IDB as collateral. Last month, the two banks foreclosed most of the attached shares at a low price.
Dankner's debt settlement proposal to each of the banks is based on three principles: no preference for any creditor over another; no writing off of debts, but rescheduling them over a longer period; and the sale of his house in Herzliya Pituah, part of the proceeds of which will go into the settlement pot.
Published by Globes [online], Israel business news - www.globes-online.com - on March 2, 2014
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