Delek RE to Move, Lay Off Workers as It Goes Private

Seven years after going public, Yitzhak Tshuva's troubled Delek Real Estate is set to lay off six out of every 10 employees.

Of the company's 42 workers, 25 are expected to be dismissed following Tshuva's decision to take the company private after coming to terms with bondholders in a deal that slashed NIS 1.6 billion of the NIS 2.15 million owed them. The smaller company will also vacate its Ramat Gan offices.

The firm said in a statment that due to the agreement with the bondholders and the delisting of the company, it would "continue its operations as a private company on a reduced scale."

Among the changes, CFO Daniel Leventhal, who oversaw the negotiations with the bondholders, is expected to step down and take on another position at Tshuva's Delek Group. CEO Eran Meital is also expected to leave once the bondholder agreement is fully implemented.