After Alon Blue Square, now it's the turn of Rosebud Real Estate Ltd. (TASE: ROSB). The real estate company controlled by Shraga Biran and David Wiessman notified the Tel Aviv Stock exchange today of an outline debt arrangement because of Biran and Wiessman's difficulty in injecting cash to cover the company's debt to its bondholders, totaling NIS 53 million (capital and interest).
In the past few years, the two controlling shareholders, who control Rosebud through privately-held Beilsol (which also controls the Alon group) sums totaling NIS 250 million to enable it to pay capital and interest to the bondholders.
Last week, the company announced that the debt arrangement would consist of a three-year deferment of capital and interest payments in exchange for a payment of NIS 7.5 million by the owners, plus a partial mortgage on land held by Rosebud in Romania. In July this year, Bluerose, of which Rosebud owns 50%, signed a non-binding memorandum of understanding with a real estate developer to build 150 housing units on the land.
Rosebud has just NIS 200,000 cash, after reporting a NIS 102 million shareholders' equity deficit at the end of March 2015, because of cumulative losses of NIS 322 million. It will therefore need further loans from the Beilsol, owned 80% by Biran and 20% by Wiessman.
Published by Globes [online], Israel business news - www.globes-online.com - on November 29, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015