Leumi demands repayment of NIS 189m Delek Real Estate debt

Delek Real Estate Ltd. (TASE: DLKR), controlled by Yitzhak Tshuva, yesterday announced that subsidiary Carmel Beach Resort 89 Ltd., which guarantees a debt of the company to Bank Leumi (TASE: LUMI), last Thursday received a demand from the bank to repay a debt of NIS 189 million. The bank added that non-payment would result in the liquidation of NIS 400,000 in deposits in Carmel Beach Resort's accounts at the bank.

Delek Real Estate added that Bank Leumi told it orally that besides offsetting these deposits, the bank was not demanding repayment of the balance of the debt to it.

Last week, the trustee of Delek Real Estate's Series 25 Bond, Adv. Guy Gissin, asked the court to appoint an attorney as an observer with no management rights in the company as liquidator in the event that the debt settlement proposed by the company did not result in a binding settlement.

The observer will be able to participate in all Delek Real Estate board meetings, to demand and receive documents and other items he needs, including items on company transactions in previous years, to appoint experts, and, in general, to ensure that company affairs are managed properly in a way that does not discriminate against any of its creditors.

Delek Real Estate's share price fell 1.6% by midday today to NIS 0.18, giving a market cap of NIS 72 million.

Published by Globes [online], Israel business news - www.globes-online.com - on April 9, 2012

? Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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