IDB Development Corporation, which is controlled by Nochi Dankner's IDB Holding Corporation, announced yesterday that it had finally sold the company’s executive jet for $9.5 million.
While the NIS 34 million proceeds won't go a far towards helping to pay down IDB Development's NIS 2.5 billion in debt, the aircraft had come to symbolize what many see as the excesses of the holding company under Dankner's leadership.
The jet was purchased by IDB in 2008, when the group was regarded as one of the financially strongest companies in Israel and Dankner was working to turn it into a truly global company, instead of one focused on domestic business. But it came to represent the expenses the tycoon was running up for salaries and management overheads, which weighed down on its profitability and contributed to the financial imbroglio it finds itself in today.
The Bombardier Challenger 604 jet was bought for $26 million and was therefore sold at a loss, in a transactions IDB said would be completed next month – a full year after the company said it had put the plane on the market. The jet is capable of ranges up to 7,400 kilometers and can carry 12 passengers.
Besides the sale of Clal Insurance to raise cash, IDB is weighing selling its stake in Switzerland's Credit Suisse, as well as merging Koor Industries, a holding company subsidiary, into Discount Investment Corporation, in order to save costs.