Argentinian investor Eduardo Elsztain has backed out of his planned investment in Nochi Dankner’s financially troubled IDB Holding Corporation, Dankner informed the company’s bondholders Thursday night.
- The Jewish-Argentinian Savior of Israeli Tycoon Nochi Dankner
- IDB Asks Court to Delay Debt Deadline
- Dankner, IDB Deny Ad Boycott of Haaretz
- Dankner on Verge of Losing Control Over IDB After Argentine Millionaire Withdraws
- Bondholders Cool to New IDB Debt Plan
- IDB Development in Advanced Talks to Sell Controlling Stake in Clal Insurance
- Unusual Trading Volume Tipped Off Authorities in Dankner Probe
Dankner said he would give bondholders a new proposal for a debt arrangement in the next few days. He said that other Israeli and international investors plan to invest hundreds of millions of shekels in IDB, and the money will be deposited in an escrow account early next week.
But so far, who these investors are remains unknown, as does the seriousness of their intentions.
Elsztain, who invested $25 million in IDB’s parent company, Ganden Holdings, last September, had been expected to invest some NIS 700 million in IDB, together with other investors.
A source close to the company said that Elsztain “has had it with the Israeli economy. But we believe that by Sunday, everything will be clearer and Dankner will present his alternative to the investors.”
Sources close to IDB’s bondholders said they weren’t yet sure whether Elsztain’s withdrawal was for real, or just a ploy to intimidate them.
In nonbinding votes, more than 90% of IDB’s bondholders indicated Thursday, before they learned Elsztain was backing out, that they would rather take over the company than reach a deal with Dankner.