Elbit: Court sees path to plan approval in light of noteholder support

By Caroline Salls

Pittsburgh, Oct. 10 - Elbit Imaging Ltd. said the Tel Aviv District Court ordered that noteholder support for the company's adjusted plan of arrangement leaves no reason why the plan should not be approved at noteholder meetings.

According to a company news release, the noteholders' meetings will be held within seven days.

As previously reported, Elbit announced on Oct. 3 that noteholders with roughly 91% of voting power participating at meetings related to court approval of the adjusted arrangement of the company's unsecured financial debt voted to instruct trustees not to object to the arrangement motion.

The company said the instructed trustees represent holders of more than 99% of the total notes obligations.

Under the adjusted arrangement submitted on Sept. 18, the total principal amount of the two series of new notes that will be issued under the arrangement will be increased to NIS 666 million from NIS 570 million.

The principal amount of the first series of new notes will be increased to NIS 448 million, repayable in a single payment at the end of 4.5 years from the date of issuance. The principal amount of the second series of new notes will be increased to NIS 218 million, repayable in a single payment at the end of six years from the date of issuance.

Both series of notes will bear interest at the rate of 6%, but each will be linked to the consumer price index.

In addition, the new notes will include mandatory prepayment provisions in the event that the company pays a cash dividend or makes any other distribution within 4.5 years following the date of issuance. If a mandatory prepayment provision is triggered, Elbit must prepay an amount equal to the amount distributed, with the payment applied first toward all unpaid amounts under the first series of new notes and then toward all unpaid amounts under the second series of new notes.

Tel Aviv-based Elbit Imaging is a holding company with activities in the fields of commercial and entertainment centers, hotels, image-guided treatment, residential real estate and fashion retail.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.