The haircut that Yitzhak Tshuva proposes for the bondholders of his company Delek Real Estate reached the Knesset on Wednesday, where the Economics Committee called on the energy and property baron to make a better offer.
At a meeting of the Economics Committee, chairman Carmel Shama-Hacohen (Likud ) urged Tshuva to substantially improve the proposed debt arrangement at Delek Real Estate. "Anybody who thinks the proposed arrangement will pass muster is dreaming," Shama-Hacohen said.
Representatives of the Delek group of companies were there.
Shama-Hacohen accused the group of raising money using smoke and mirrors. "I am prepared to waive my immunity," he said. "I have a very bad feeling. When it comes to the public's money, it cannot be that family members are employed with the justification that they deliver good service." Tshuva's daughter and brother work for Delek.
Eran Meital, CEO of Delek Real Estate, rebutted that the company is publicly traded, operates transparently and obeys the law. He and Shama-Hacohen disputed whether or not Delek Real Estate had paid "management fees" to Tshuva or to his companies.
From 2003 to 2007, NIS 391 million were withdrawn from Delek Real Estate as dividends, according to the Israel Securities Authority. From 2005 to 2010 its five top executives earned NIS 51.2 million (in gross terms ); and in those five years the company paid NIS 32.9 million in management fees. Options to executives came to NIS 71.4 million.
Want to enjoy 'Zen' reading - with no ads and just the article? Subscribe todaySubscribe now