IDB Holding Corp yesterday reached the outline of an agreement with its bondholders over the NIS 1.8 billion it owes them. The company, which is the top of businessman Nochi Dankner's business pyramid, also owes banks and other creditors NIS 260 million.

The basics of the deal hashed out – which is not final - are that Dankner will retain control over the group. The bondholders will exchange part of the debt they're owed for a 15% equity stake and some bonds they hold will be replaced by new ones. In any case however they will be suffering a haircut, which is market argot meaning they aren't going to get back all their money invested in bonds.

Much remains dependent on the Jewish-Argentine businessman Eduardo Elsztain. He is expected to buy 21% of Ganden Holdings, through which Dankner owns IDB, for NIS 280 million. In other words Elsztain would be joining the group in control of IDB, which is one of the biggest conglomerates in the Israeli business scene.

Last year Elsztain bought a 10% interest in Ganden for NIS 100 million. Assuming he comes through with the second installment, he will own 31% of Ganden.

It seems that out of the NIS 275 million from Elsztain, NIS 235 million would go straight to IDB Holding, and the remainder would go to Ganden creditors Bank Leumi and Mizrahi Tefahot, which Ganden owes NIS 450 million and NIS 85 million respectively.

For his part, Dankner is demanding that he be safe from future claims.