Delek Glbl Share Discussion Threads

[kenny] 11/8/2011 13:14

Another dividend:

9th August 2011

Delek Global Real Estate plc ("DGRE" or the "Company")

Proposed Interim Dividend

The board of DGRE announces that it resolved in its meeting held earlier today (9th August 2011) to declare an interim dividend of 3.3 pence per DGRE share. The dividend is payable to shareholders on the register at 9th August 2011, and is payable on 23rd August 2011 (or as soon as practicable thereafter).

[kenny] 05/8/2011 21:41

I would guess that if DRE needs more money then DGRE will need to keep selling properties and distributing dividends/buybacks. We may need only wait a few weeks/months for the next payback. If the bondholders end up owning DRE by putting into liquidation; I think it is the same result.

[grollfam] 04/8/2011 07:14

Delek RE bondholders scorn debt deal

At a raucous two-hour meeting yesterday, Delek Real Estate bondholders rejected the proposed debt rescheduling agreement.

During the meeting in offices in Ramat Gan, Delek Real Estate executives had warned bondholders that they were unsure whether the company could achieve its strategic plan and commitments over the long term.

The firm, which is controlled by Yitzhak Tshuva's Delek Group, is scheduled to pay off NIS 310 million in bonds in September. But it admits it does not have the cash to pay.

"In light of recent events and their significance, the company has concluded that it needs a number of months to formulate an overall framework for servicing the firm's debts," wrote the company in its debt reorganization proposal.

"Tshuva should come down from Olympus and give us answers to our problems," said one bondholder at the meeting.

The question is whether the real estate and energy baron will put up his own money.

"If he's here, let him speak. He only shows up for offerings," said the bondholder. Other bondholders applauded. "If you don't have any answers then there is no reason for this meeting. There is no point to the presentation or anything at all. We know the presentations, you can test us," he added.

The company said it needed more time, five months specifically: "This period will be devoted to the following activities: Examining the situation of the lessee of Delek Real Estate's main asset, [127 parking lots in England, Scotland and Wales], and the value of the parking lot portfolio, while relating to the situation of the lessee and the potential for possible enhancements."

The company also said it would be "examining the existing potential for enhancing [the value] of Elad Israel Residence, including considering a combination deal with a third party."

Last week Delek Real Estate's board met to study the dire situation and consider alternatives on how to pay off its NIS 3.8 billion in debts with almost no cash in the kitty.

When asked what the situation will be in five months, CEO Eran Meital said that at the moment he did not have a solution and did not know what would be in five months. In response, investors said that given such answers they would not agree to anything if Tshuva did not put up money.

"We're sick already of these spins," said one bondholder. "Yitzhak Tshuva should understand that if Hosni Mubarak is sitting in a cage today, then he too doesn't have immunity."

[grollfam] 03/8/2011 14:52

AND NOW KENNY ????????

Delek Real Estate bondholders reject Tshuva's offer

Yitzhak Tshuva had asked for a five-month postponement in bond payments.
3 August 11 16:14, Avi ShaulyBondholders in Yitzhak Tshuva-controlled Delek Real Estate Ltd. (TASE: DLKR) today rejected his request to postpone repayments for five months, a week after he made it. Tshuva did not attend the bondholders' meeting at the Leonardo City Tower Hotel in Ramat Gan, and Delek Real Estate CEO Eran Meital had to face the bondholders' ire, who demanded that Tshuva appear before them.
The bondholders demanded that Delek Real Estate pay NIS 180 million in cash out of the NIS 300 million owed, and either the company or Tshuva provide a guarantee on the balance.

Delek Real Estate's share price fell 1.3% to NIS 0.22, giving a market cap of NIS 86 million.

Published by Globes [online], Israel business news - www.globes-online.com -

[grollfam] 02/8/2011 14:15

LETS SEE WHAT HAPPENS TOMMORROW.................................

Phoenix waiting for bondholders' cue on Delek RE debt

Delek Real Estate owes NIS 65 million to the Phoenix insurance company, through a number of subsidiaries. Will Phoenix extend the repayment deadline? ‏(NIS 45 million is due this month‏)? Following independent discussions in various divisions, Phoenix said Sunday night it will in effect wait for the outcome of tomorrow's bondholders assembly to decide. Delek RE hopes its bondholders will agree to defer repayment of NIS 310 million by five months, and has already stated that it can't make this month's payment. Both companies are controlled by Yitzhak Tshuva's Delek Group. ‏(Michael Rochvarger and Noam Bar‏)

[grollfam] 27/7/2011 11:04

cash received for 2nd buyback......

[kenny] 27/7/2011 10:47

DRE bondholders are revolting!!
==============
Published 02:32 27.07.11

Institutionals demand cash, collateral from Delek Real Estate
Tshuva group should take page from Arison's book, say investors.
By Noam Bar

Following Delek Real Estate's request for a five-month deferral on payments to its series B25 bondholders, institutional investors holding the bonds expressed disappointment with the company's vague notice to the Tel Aviv Stock Exchange. The institutionals made it clear that any agreement with the company, controlled by Yitzhak Tshuva, must include an injection of funds and other assets into the firm from outside sources.

"Postponement of payment can only be considered if Tshuva puts together an assistance plan based on external sources," said one leading insurance firm official. "Otherwise, what would be the point of the deferral?

"Meanwhile, we require something in advance," he added. "Another interest rate point won't achieve anything."

The official said that realizing assets wouldn't help bondholders, since the company also has long-term debt to holders of series B4 and B5 bonds, and discrimination between creditors would become a problem if assets were sold to cover its short-term obligations.

"Tshuva has a chance to defer an impending payment, since the market believes he stands behind the company," the official continued. "That's our opening assumption: Tshuva always appeared personally at his securities offerings, and he has the ability to stand behind the company. He doesn't distinguish between himself and his companies and always made sure to identify himself with them, so this is also his moral obligation. Regardless of the laws and the concept of limited liability, Tshuva would be hurt badly if he didn't stand behind the company."

The credit department of an investment house that holds a significant volume of series B25 bonds analyzed Delek Real Estate's ability to make payment and concluded that the company has no incentive to do so.

"Look how Shari Arison put up half a billion shekels in security to [Arison Holdings] bondholders yesterday," the investment house's CEO complained. "Tshuva should take a page from her book and offer something concrete."

The CEO added that he thinks an opening negotiating position could be established if Tshuva chooses to give bondholders collateral in addition to raising the interest and making immediate payment on part of the debt. "There is no reason to defer the entire payment when a partial deferral could pull the rug out from under the feet of anyone wanting to claim that the payment reflects a preference for short-term bondholders over long-term," he explained.

Prominent owners of Delek Real Estate series B25 bonds include the Menora Mivtachim Group, which has NIS 30 million par value (along with NIS 90 million par value in series B5 ), and Migdal Capital Markets, which also has NIS 30 million par value. The Migdal Group as a whole holds about NIS 72 million par value in Delek Real Estate bonds.

Meir Mazuz, CEO of Excellence Mutual Funds - which holds NIS 8 million par value in series B25 along with NIS 20 million in the other bonds series - said the drama created by the media doesn't help matters.

"They only brought the proposal yesterday," Mazuz said. "Give us time to understand and consider it. This is no reason to engage in dramatics. I assume there will be several proposals, and we will choose one."
====================

[kenny] 26/7/2011 00:45

This article suggests enhancing the value of the NCP assets, not too sure what they have in mind but they will need some capital to develop some of them into offices or for residential use:


Tshuva postpones the inevitable by six months
Published 01:50 26.07.11
Delek Real Estate offers higher interest, in exchange for breathing time to repay bondholders.
By Michael Rochvarger

The drama surrounding an imminent NIS 2.2 billion debt settlement for Delek Real Estate intensified Sunday night as the company's board of directors met for the second time since last Thursday to determine what to do about NIS 310 million in payments due to series B25 bondholders in September. The board decided to offer a higher rate of interest on the bonds in return for a six-month postponement in payments.

The board, chaired by Roni Elroy, the son-in-law of controlling owner Yitzhak Tshuva, showed up in full force to be updated on the real estate firm's bleak predicament and options for dealing with its NIS 3.8 billion recourse debt with its bare coffers.

As a first step, the board will ask series B25 bondholders to convene and consider the company's offer to increase the interest rate they receive from the current 7.3% in return for granting the company a six-month deferment in its payments.

It appears that Tshuva is playing for time and trying to delay the eventuality of any "haircuts." In anticipation of the offer, Delek Real Estate share and bond prices gained strongly Sunday, but fell back in yesterday's trading. The company's stock tumbled 7.1% on turnover of NIS 2 million, while its debentures fell by 5.6% to 10%.

Meanwhile, the company hopes that somehow within this timeframe it can formulate an overall fix for its problems, including reorganizing its debt, putting up its Delek Global Real Estate and Elad Residential shares as collateral, exchanging debts for assets, or any other possible combination acceptable to bondholders, 50% of which are institutionals.

All this assumes that Tshuva will pump more funds into the company.

This will be the first time a scheduled payment in a firm he controls is missed.

The board was presented with a review of the company's situation, reflected by its NIS 1.3 billion deficit: In other words its liabilities are NIS 1.3 billion greater than the value of all its assets.

But management, led by CEO Eran Meital, believes the value of its assets can be enhanced, particularly the parking lots in Britain leased to National Car Parks (NCP ). The actual value of those lots remains unclear.

According to Meital, the assets of Elad Israel Residence, currently estimated at NIS 400 million in value, can also be improved. This can be done, in his view, through collaborative deals based on company-owned land in the Bavli and Ha'argazim sections of Tel Aviv: Construction firms, for example, could be given open land for building in exchange for a set percentage of revenues from housing sales.

[kenny] 25/7/2011 15:47

It would be amazing if they did manage to sell the NCP stake without triggering the swap liabilities.

Anyone received proceeds from the second buyback?

[grollfam] 25/7/2011 15:33

Delek Real Estate seeks payment deferral


Debt in question is NIS 130 million. Calcalist learns that Delek Real Estate board carefully avoiding any mention of a debt arrangement or resorting to haircut. New deadline set for January 31

Golan Hazani, Calcalist Published: 07.25.11, 16:17 / Israel Business
share




Delek Real Estate will ask bondholders for a deferral on the repayment of the principle on its 25-Series bond to the end of January in return for raising the bond's interest at an agreed rate, the company's board decided around midnight Sunday.



The payment the company seeks to defer totals NIS 130 million (about $38 million) and constitutes 50% of the remaining principle.



The boards advised TASE that it had "reached the conclusion that for the time being, the company's ability to meet its long term obligations is doubtful and therefore there is a need to formulate an updated debt repayment scheme.



"Under these circumstances, the board instructed company management to promote among its financial creditors and bondholders an agreed repayment deferral of the entire principle until January 31, 2012 which is presently due for payment."



Additionally, the company announced that "during the deferral period, the 25 Series bondholders will receive higher interest in lieu of the deferred payment."



Delek Real Estate CEO Eran Meital responded that "the company decided to ask its bondholders to approve a short postponement of approximately five months in the belief that it is for the good of the company and its investors."



The deferral is for five months after the bond's original maturity date which according to the bond amortization schedule is September 5, 2011, last Friday being the ex date.



It should be mentioned that last week, Delek Real Estate's board requested management to propose a solution to the debt predicament and last night the chips fell and the board decided on the aforementioned payment deferral.



At the same time, Delek Real Estate's controlling interest, Yitzhak Tshuva has agreed to a postponement of a NIS 80 million ($24 million) payment he was to receive on his 2-Series bonds (due November and December).




In addition, Delek Real Estate will not meet its NIS 45 million ($13 million) obligation to the Phoenix due in August and the company will inform the Phoenix that it would repay the debt once the assets the Phoenix has a lien upon are realized in lieu of the loan. The NIS 31 million ($9 million) interest on the 5-Series bonds will be duly paid.



During the deferral period the company aims to formulate an updated scheme to ameliorate its two main assets – Elad Israel and its car park chain NCP after which it will reassess its condition in an attempt to meet its obligations.



SEE LAST PARAGRAPH.....LOOKS LIKE DGRE WILL TRY AND SELL NCP STAKE IN NEXT FEW MONTHS...

[tiltonboy] 13/7/2011 15:34

Excellent.

Where are the next batch of sales likely to come from? I do not have the breadth of knowledge of the portfolio that others on here have.

[kenny] 13/7/2011 15:14

Just had confirmation from the company that the condition has been satisfied e.g. funds received. Therefore, the second tranche buy back will be proceeding.

[kenny] 12/7/2011 17:25

RJ Allen - it is up to you, but I suggest you chase TDW or else they will miss the deadline and you will not be able to participate.

[bitochon] 12/7/2011 16:36

Thank you very much Kenny. Received the email a few moments ago.

[rj allen] 12/7/2011 16:28

Nothing from TD Waterhouse on the buyback

[kenny] 12/7/2011 14:19

bitochon, Barclays called me today; stated they have now "found" the documentation and are emailing clients today. In view of the short time scale, Barclays have also undertaken to phone all holders to ensure they give their instructions before the deadline - which I belive is 1pm on Friday - the 15th. Chase them!

[bitochon] 12/7/2011 14:01

Kenny, I called Barclays and they claim to know nothing about a share buy back?!

[grollfam] 10/7/2011 21:59

Not really Kenny, we were aware. That there is no equity in that German property,and the NCP write down already happened in the 1st quarter accounts.
Once the last property is sold in Canada, we will get another large slug of capital back,and then we will have to wait,or DRE will sell the rump of DGRE off to a 3rd party

[kenny] 10/7/2011 21:18

More bad news:

Delek Real Estate faces UK, German troubles
A German bank has appointed a receiver for a building in Mülheim, and in the UK, the company's car parks portfolio faces higher interest rates on its loans.
Shiri Habib-Valdhorn 10 Jul 11 14:58


European banks are appointing receivers for more properties owned by Yitzhak Tshuva-controlled Delek Real Estate Ltd. (TASE: DLKR) through its subsidiary Delek Global Real Estate plc. In Germany, a bank has appointed a receiver for the T Systems Building in Mülheim, and in the UK, the company's portfolio of car parks faces higher interest rates on its loans following a downward revaluation. The actions come after the Royal Bank of Scotland plc (LSE; NYSE: RBS) appointed a receiver for the UK Marriott Hotels portfolio, in which Delek Global Real Estate owns an 17% stake
Delek Global Real Estate owns 60% of the T Systems office building, and Dorea Investment and Developments Ltd. (TASE:DORA) owns 20% and has a NIS 3.8 million exposure to the property. The companies were due to repay the secured loan against the property in January. When they failed to do so, the lending agreed not to take proceedings during negotiations. The second extension expired at the beginning of July.

The bank refused a further extension and appointed a receiver after a bank-appointed appraiser valued the property at €17.7 million. Delek Real Estate says that the balance of the loan was €21.3 million at the end of March, and that it books the property at €25 million. The company says that it will report a €1.9 million (NIS 9.3 million) loss on the foreclosure.

In the UK, Delek Global Real Estate owns 59% of the portfolio of 127 car parks, which are leased to National Car Park Ltd. (NCP). The spread on NCP's loans was raised from 1.75% a year to 3.282%, which will add ₤2 million in annual interest payments. The lender's appraiser valued NCP at ₤656 million - ₤257 million less than the value in Delek Real Estate's books. Delek Global Real Estate rejects the new valuation.

At the same time, NCP has asked Delek Global Real Estate for a 7% rent reduction, amounting to ₤750,000 reduction per quarter (₤3 million per year) from September. Delek Global Real Estate has not yet reviewed the request.

In its financial report for 2010, Delek Real Estate says that its revenue from NCP was NIS 252 million, 10% of its total rental income, and added that rent would rise by 2.7% a year. The long-term leases on the car parks will expire in 15-26 years. Delek Real Estate noted, "There is special dependency given that NCP is the sole tenant."

Delek Real Estate's share price has plummeted from its peak. The share price fell 3.1% by mid-afternoon today to NIS 0.279, giving a market cap of NIS 110 million.

Published by Globes [online], Israel business news - www.globes-online.com - on July 10, 2011

[tiltonboy] 07/7/2011 22:36

No, through our own Nominee.

[kenny] 07/7/2011 17:04

Are you holding via Barclays?

[tiltonboy] 07/7/2011 16:36

Had my documentation and have elected already.

[kenny] 07/7/2011 16:21

Anyone else have their shareholding via Barclays. They are saying the second buyback offer is conditional so they have nothing to do until the offer is unconditional!! They claim they have not received any documentation from the company - so they are not aware of the 15 July deadline.

I strongly recommend that any others holding via Barclays get on the phone and ask to place their instructions for the 2nd buyback as the deadline is 15 July.

[kenny] 01/7/2011 12:51

grollfam

I am also far from unhappy about the situation since delisting. Taking the dividends since I started buying in March 2008 plus the buybacks, I have recouped all of my capital plus more. Therefore, although I still have a very large holding in DGRE, if it only pays dividends in the next 10 years or more, I will not be disappointed.

On another point, dividends going forward may indeed be a bit lower than I posted above - maybe as low as 5p per annum. Hard to predict precisely with all the property sales and also pending loans maturing which need to be replaced.