The troubled Peled-Givony group is trying to reach a refinancing agreement on its bank loans and has expressed the desire to present the banks with a recovery plan before collateral is repossessed, banking sector sources told Ha'aretz.
The group fears its shaky situation will cause the banks to repossess mortgaged assets, including shares in the publicly traded companies, real estate, bank deposits and apparently also personal guarantees.
The banking sector estimates that the group's troubles will result in NIS 200-300 provisions for doubtful debt. Some of the sum was already posted in the last two quarters and the rest will appear in upcoming financial statements.
The Peled-Givony group has taken credit from Bank Hapoalim, Bank Leumi, Israel Discount Bank, Industrial Development Bank and Continental Bank. According to estimates, the group owes some NIS 800-900 million, a large portion of which is current credit provided before the companies were bought up by the pair.
The group includes the Peled Fund, Hayl Holdings, Feuchtwanger Investments, Iscal, Mashav Refrigeration, Feuchtwanger Industries, Feuchtwanger Electromechanics and Afcon Control.
The banks have mapped the group's holdings in recent months including the companies' shareholder relationships. The banks were not previously aware of the criss-cross relationship between the various enterprises.
The banks claimed this is why they granted hundreds of millions of shekels in loans to the group without realizing the complex internal relationships. A banking sector source stated that despite the fact the group is known as the "Peled-Givony Group," the banks did not treat all companies in the group identically and based their loans on each company's collateral and guarantee situation.
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