Who's Who in Corporate Debt

Nathan Lipson
Nathan Lipson
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Nathan Lipson
Nathan Lipson

A mountain of corporate debt is coming due in the near future. Specifically, NIS 18.6 billion worth of it in the space of 13 months, and that's leaving the banks out of it. All that is debt not to the banks, but to bondholders, according to Tel Aviv Stock Exchange data.

The market has been evincing deep worry about the "tycoons'" ability to repay their gargantan debts. Single companies turn out to be owing billions upon billions of shekels and some of them are mere branches inside much greater empires.

Who will repay? We can't know right now. Who owes how much? That we can say.

First of all, this NIS 18.5 billion is supposed to be repaid in about 1,000 payments (of principal and interest) between December 2009 and December 2009.

The figures are based upon up-to-date balances of bond series, adjusted for the consumer price index for October, which was published on November 15. The calculations exclude illiquid bonds issued through private placements with institutional investors.

Also, the total excludes bonds that the companies repurchased. It does however include bonds of parent companies held by subsidiaries.

During the year to come, one of the heaviest months for repayments is now - December 2008. The companies have to give back a combined NIS 2 billion).

Then in June 2009 they have to repay NIS 2.5 billion, and come December 2009, they'll have to fork over NIS 2.1 billion.

Most of the largest single payments are scheduled to take place in the second half of 2009 when Paz Oil Company is due to pay out NIS 452 million for its B1 series in late October, and NIS 380 million are due to holders of Bezeq B4 series bonds in early June of 2009.

NIS 261 million and NIS 258 million are due to Partner B1 series bondholders in late June and late September, accordingly.

I.D.B. Development is scheduled to repay debts of NIS 257 million and NIS 244 million in late December 2008 and late December 2009 for its B5 series.

The controlling shareholder whose companies face the largest debt over the coming 13 months is Nochi Dankner. His firms will have to repay bondholders NIS 3 billion in that time.

Dankner is followed by Eliezer Fishman with NIS 1.1 billion in debt due in those 13 months.

Mobile communications company Partner Communications faces repayments of NIS 833 million in this coming year: that company is owned by the Chinese giant Hutchison Whampoa.

Chaim Katzman and Dori Segal control the Gazit group, which is facing maturity of NIS 718 million in bonds. And last but never least among the headline tycoons is Yitzhak Tshuva, owner of the Delek empire of companies. Their bond repayments will come to NIS 696 million in the next 13 months.