Alon approves settlement with unit trustees and acquisition company

By Caroline Salls

Pittsburgh, May 31 – Alon Blue Square Israel Ltd. approved a settlement agreement reached with the trustees of subsidiary Mega Retail and a company controlled by Moti Ben Moshe, which would acquire control of the company under a proposed debt reorganization and arrangement filed with the Israeli District Court in Lod, Israel.

According to a company news release, the agreement generally provides for the settlement of all lawsuits and claims between Mega Retail and Alon Blue Square. The parties also agreed to a mutual waiver of claims against each other.

As previously reported, Alon Blue Square would pay the roughly NIS 300 million of guaranteed or indemnified outstanding debt owed by Mega to its bank lenders and NIS 90 million of guaranteed and indemnified outstanding debt owed by Mega Retail to credit insurers of suppliers, of which NIS 30 million will be paid to Alon Blue Square by Mega Retail.

Alon Blue Square said it will remain solely liable for the guaranteed debt and for some obligations incurred as part of legal proceedings involving the company.

The agreement is contingent upon approval of the company’s guaranteed banks, approval of the guaranteed banks to the debt arrangement in Mega Retail based on the acquisition of Mega Retail by Bitan Wines Ltd. and approval of the court of the company’s debt arrangement and the effectiveness of the arrangement.

Based in Rosh Ha’Ayin, Israel, Alon Blue Square owns and operates supermarkets and specialty stores.

© 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.