After ten years of owning the IDB group of companies, Nochi Dankner may soon lose control of his group, after key creditors reached agreements between themselves on Thursday night.
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Towards dawn, representatives of bondholders reached agreements on consolidation within the debt-stricken group, and hope the courts will agree to replace Dankner with a court-appointed manager.
At this stage the banks, Leumi, Hapoalim, Discount and Mizrahi-Tefahot, have declined to comment on the arrangement reached by the bondholders.
According to the bondholders' proposal, the two top companies in the IDB corporate pyramid will be consolidated into a single company. Moreover, the bondholders will be motioning the court to appoint a manager to run the resulting single company, which would mean that IDB controlling shareholder Dankner would lose control.
Following IDB Holding's delisting, its bondholders will get 10% of the new company, and the NIS 200 million cash that IDB Holding presently has in hand.
IDB Development bondholders will agree to write off NIS 1.8 billion of the company's debt and will get 90% of the shares in IDB Development.
IDB Holding Corporation, the top holding company, and IDB Development Corp, another holding company beneath it in the hierarchy, will be merged under the scenario concocted by bondholders of the two companies. The resultant company will continued to be called IDB Development and will be listed on the Tel Aviv Stock Exchange.
Presently shares and bonds of IDB Holding are listed for trade on the TASE. IDB Development delisted its shares but its bonds continue to trade. In the new situation, IDB Holding will be delisted.
Sources near the bondholders add that they hope the banks, to which the IDB group also owes much money, will join the arrangement.