Elbit notes trustees' liquidation request suspended; voting rules set

By Caroline Salls

Pittsburgh, July 3 - Elbit Imaging Ltd. said the Tel Aviv District Court suspended the liquidation request made by the trustees of its series B notes.

According to a news release, the court also ordered that meetings of the company's unsecured financial creditors be held by July 18 for the approval of the proposed restructuring of Elbit's unsecured debt under a plan of arrangement.

Preliminary meetings must be held by July 16.

According to the court's ruling, the creditors will be asked to vote on the adjusted plan of arrangement announced by the company on May 9.

In addition the court ruled in principle that it sees no harm in creditors also voting on the terms of a proposal prepared by some of the representatives of Elbit's outstanding series C, D, E, F and one notes while voting on the plan of arrangement.

However, if the arrangement is approved by the required majority of creditors, then the approval of the representative proposal, even by a higher majority of creditors, would not prevent court approval of the arrangement.

If there is doubt about whether the arrangement was duly approved and the proposal is supported by the needed majority of creditors, the proposal may serve as an indication for an acceptable alternative arrangement.

In that scenario, the court said the company will have to reconsider whether to proceed with that solution or take the risk that a failure to agree on the alternative arrangement might lead to liquidation.

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.

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