Gilat's restructuring plan approved by Israeli court

Chicago, March 6 - Gilat Satellite Networks Ltd. said Thursday that the Israeli District Court in Tel Aviv has approved the company's restructuring plan involving its arrangement with its bank lenders, the holders of its 4.25% convertible subordinated notes due 2005, and other creditors.

The court's consent is the final approval required for the company's debt restructuring process. Gilat expects to close the process within a period of one to two weeks.

The plan of arrangement includes issuance of a combination of 4% convertible notes due 2012 and ordinary shares in exchange for all the its existing notes and a portion of its bank debt.

As a result, Gilat expects to reduce its debt by approximately $300 million. The plan of arrangement also includes the restructuring of the terms of its bank debt.

"The Israeli Court's approval is the final step in our debt restructuring process and marks a new era for Gilat," said Yoel Gat, chairman and chief executive officer of Gilat, in a news release. "The successful conclusion of this process has further strengthened the company's position and has set the stage for future growth," he added.

Shortly after the closing, the company also plans to distribute a proxy statement, relating to a shareholders meeting that it expects to hold in April of this year, to approve the following: an increase the company's share capital, the implementation of a 20-for-1 reverse stock split, and the election of a slate of directors.

Gilat is a Petah Tikva, Israel-based telecommunications company.

© 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.