IDB Loss Widens, Carries 'Going Concern’ Warning
Much of the red ink was attributable to a 187 million shekel loss at Discount. Clal Insurance added another 88 million shekels of red ink.
IDB Development Corporation ended the second quarter with a 365 million shekel ($102 million) loss, widening from 53 million shekels a year ago, the flagship company of the IDB group reported this week.
- Tycoon loses control of IDB, Israel's biggest holding group
- Ben-Moshe, Elsztain tensions surface over Discount post, lawsuit
- IDB’s Moti Ben-Moshe goes public
- Moti Ben-Moshe: IDB group’s restless new master
- After Adama’s abortive IPO, IDB is stuck between a rock and a hard place
IDB, which Moti Ben-Moshe and Eduardo Elsztain took over from Nochi Danker earlier this year in exchange for injecting cash into the financially troubled group, continued to carry a “going concern” warning on its financial statement, meaning auditors are unsure whether the company can survive.
Shares of IDB Development dropped 1.8% to close at 4.68 shekels in Tel Aviv Stock Exchange trading Monday. Discount Investment Corporation, the unit that controls most of IDB’s operating companies, dropped 3.2% to 28.01 shekels.
Much of the red ink was attributable to a 187 million shekel loss at Discount. Clal Insurance added another 88 million shekels of red ink. Financial costs grew to 90 million shekels, IDB said, filing just before the deadline for second-quarter financial reports.
As of the end of June, IDB Development had negative equity attributable to shareholders of 335 million. IDB Development said its net debt stood at 4.2 billion shekels at the end of June.
IDB has some 495 million shekels in debt coming due in the second half of this year and another 975 million shekels next year, part of which it plans to finance through a 500 million shekel rights offering.