Investors demand Lev Leviev personally pony up

Having advised two weeks ago that it can't repay its bondholders and bankers in full, Africa Israel yesterday officially revealed the outlines of the arrangement it's offering them. The bondholders and bankers were not appreciative.

"Nothing has changed since the outline presented to us last week," said the representative of an institutional investor. Neither has his position: "We will continue to strive to reach the best arrangement for us and our savers. If we conclude that liquidation is the best thing, we will act accordingly."

"It's like borrowing NIS 100,000 from a bank to buy a car according to its list price," said another. "But when you go to get it, you discover it's worth half that. As long as [Lev] Leviev isn't part of the arrangement, there will be no arrangement."

Major institutionals deeply invested in Africa Israel bonds include Psagot, which is openly gunning for Africa Israel's liquidation unless the real estate company makes a better offer, and Menorah-Mivtachim, Clal Insurance, Migdal Capital Market, Harel, Phoenix, Excellence and DS.

"Everybody has to do his own accounting," said a source at Africa Israel. "That's the proposal we're making and we'll see how to proceed from here."

The Africa Israel sources wouldn't say if Leviev intends to put any personal money of his own into the company, or even if he has any left.

Holders of B9 bonds, who are owed NIS 550 million in November, received no indication from the real estate empire that might assuage their worries. The company has already stated that it won't make the payment, though it has the ability, in order not to discriminate against long-term bondholders.

"We're the company's biggest problem right now but it's ignoring us. It hasn't even called for a meeting," complained one of the B9 bondholders.