Alon Blue Square Israel sets meetings on July 18 for debt arrangement

By Susanna Moon

Chicago, June 30 – Alon Blue Square Israel Ltd. scheduled meetings on July 18 in Tel Aviv for its lenders, series C debenture holders and shareholders to vote on its proposed debt arrangement, according to a 6-K filing with the Securities and Exchange Commission

The record date is July 10 for the noteholders meeting.

The company also clarified that the creditors of the company’s controlling shareholder, Alon Oil Israel Co. Ltd., have agreed that the acquired assets of Alon to be acquired by Ben Moshe as part of the debt arrangement would include rights to the brands “Alon” and “Alonit,” which reportedly gives Alon about NIS 3 million per year for the use of those brands.

As part of talks held in court, the company said it offered its calculations, prepared by an independent expert economist, for the value of the company minority shares based on the amount payable to Alon as part of the debt arrangement on account of its equity holdings in the company.

The sums were based on the company’s take that the NIS 110 million loan extended by Alon to the company is in essence, not a loan at all, but rather a capital equity, and should be viewed as if it were converted to capital in a “theoretical” rights offering, the filing noted.

The calculations provided were not intended to be a valuation of the company; however, the fact that the brands “Alon” and “Alonit” are included as part of the acquired assets would result in minority shares being valued at about NIS 3.3 million, the company said.

As announced June 27, Alon said the District Court in Lod, Israel, ordered the company to schedule the meetings as soon as possible, but not before July 12.

Alon said the court stated in its decision that it is aware that there are non-Israeli shareholders that may not be able to participate in the shareholders’ meeting because of time constraints but, given the circumstances, it would not be possible to wait until those shareholders could participate.

In addition, the court appointed Amir Barnea as an expert to evaluate the company’s valuation before the proposed debt arrangement and the value of the amount to be received by Alon’s controlling shareholder on account of its shares under the proposed debt arrangement.

Parties could deliver positions to the expert regarding the value of the company’s shares before June 29, and the expert had to deliver his report within two weeks.

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.