Bronfman, Fisher vow to back Isralom
Isralom Properties has been in breach of certain financial covenants for over a year.
Attempting to allay fears of insolvency among its bondholders, Isralom Properties said that its controlling shareholders had orally agreed to extend support for the financially troubled company for a four years.
Matthew Bronfman, a scion of the Canadian family,that made its fortune with Seagrams and his partner Yaakov Shalom Fisher also agreed that the trustees representing the troubled company's bondholders would get highest priority in terms of any support they give and pledged not to sell company bonds they now hold, Isralom said in a statement Sunday to the Tel Aviv Stock Exchange.
Isralom has been in breach of certain financial covenants for over a year.
But Bronfman and Fisher conditioned their commitment on negotiations being completed with secured bondholders, as well as on bondholders' refraining from demanding immediate repayment or taking any other action against the company or its controlling shareholders. They also insisted that bondholders make no new demands while the company makes its bond payments on schedule.
Isralom shares were delisted from TASE trading in April 2010. The company has three bond series outstanding totaling NIS 215 million, in addition to NIS 930 million in bank debt. The value of its main holding, an 18% stake in Super-Sol, has plunged in the last year and a half, placing Isralom in a financially difficult situation.