Delek Glbl Share Discussion Threads

[kenny] 17/4/2012 08:20

Delek Real Estate tells court it agrees to liquidation
The company, controlled by Yitzhak Tshuva, signalled the move last week. It owes bondholders NIS 2.1 billion.
Avi Shauly 16 Apr 12 09:57


At about 10 pm yesterday, Delek Real Estate Ltd. (TASE: DLKR, controlled by Yitzhak Tshuva, filed an application in the Tel Aviv District Court consenting to the liquidation of the company. Delek Real Estate has thus done what it said it would do in its announcement to the Tel Aviv Stock Exchange last week, in which it stated that it would not oppose the request for liquidation filed by the trustee of the company's 25 series bond.
Delek Real Estate's total debt under the three bond series that it issued is NIS 2.1 billion, of which NIS 150 million relates to the 4 series bond, NIS 580 million to the 5 series, and NIS 1.4 billion to the 25 series.

In November 2011, Delek Real Estate proposed a debt arrangement to its bondholders involving a "haircut" of hundreds of millions of shekels. The trustees of the 4 and 5 series bonds approved the settlement, but the trustee of the 25 series did not join.

[grollfam] 12/4/2012 15:51

Kenny,

bond holders cannot allow DRE to go into liquidation as they will lose most of their capital and tshuva will not pay in a cent.....very funny......NCP restructuring is much more important for us DGRE shareholders

[kenny] 10/4/2012 00:07

DRE throws in the towel:

Published 00:54 10.04.12

Dramatic turn: Delek Real Estate to bondholders: Go ahead, liquidate us
By Michael Rochvarger

After months of negotiations between Delek Real Estate and its bondholders, the company announced yesterday evening that it doesn't object to the liquidation request filed by its series B25 bondholders.

Altogether the company owes its bondholders NIS 2.2 billion. The B25 bondholders are owed NIS 570 million.

Delek Real Estate said it will ask the Tel Aviv District Court for an urgent hearing immediately after Passover over its own liquidation. In other words, now the ball is in the bondholders' court and they have a week, at least, to lob it back.

If they don't, and accept liquidation, Delek Real Estate bondholders could lose up to 90% of their money, compared to a 50% loss to which the company's series B4 and B5 bondholders have agreed.

The B25 bondholders sued for liquidation last Thursday. They also asked that Judge Varda Alschech appoint an observer to supervise the company's operations, both past and present, hoping to press company owner Yitzhak Tshuva into reaching an debt agreement with them quickly. But yesterday the company took a different tack. Lacking options, it said, it has to accept the liquidation request.

The board met yesterday and decided, it seems after receiving a message from Tshuva, not to change the proposed debt restructuring deal.

None of this means Tshuva is in trouble himself, only Delek Real Estate. Tshuva is in advanced negotiations to sell the Plaza Hotel in New York to the Sahara Group, one of India's largest companies. The Plaza is owned by the Elad Group, Tshuva's private North American real estate arm. The price is $600 million, of which Tshuva's company is likely to receive $450 million. In addition, Tshuva's holdings in the Delek Group and its subsidiaries are expected to bring n billions in coming years form their offshore natural gas discoveries.

[grollfam] 09/4/2012 11:52

hi Kenny

On Holiday in Plettenberg Bay South Africa for Easter/Pesach.....Read the article earlier, but do not believe it is that material to DGRE

The Big Game changer for DGRE will be the Restructuring of the tenant of NCP by agreeing new terms with their banker/Lenders and DGRE as landlord....

SO, we have to wait for information later this month to see what transpires with the major asset left in DGRE, being NCP

[kenny] 09/4/2012 11:27

Everything closing in on DRE:

Leumi demands repayment of NIS 189m Delek Real Estate debt
Bank Leumi notified Delek Real Estate unit Carmel Beach Resort 89 Ltd. that it must repay the debt, which it guarantees.
Hillel Koren 9 Apr 12 12:00


Delek Real Estate Ltd. (TASE: DLKR), controlled by Yitzhak Tshuva, yesterday announced that subsidiary Carmel Beach Resort 89 Ltd., which guarantees a debt of the company to Bank Leumi (TASE: LUMI), last Thursday received a demand from the bank to repay a debt of NIS 189 million. The bank added that non-payment would result in the liquidation of NIS 400,000 in deposits in Carmel Beach Resort's accounts at the bank.
Delek Real Estate added that Bank Leumi told it orally that besides offsetting these deposits, the bank was not demanding repayment of the balance of the debt to it.

Last week, the trustee of Delek Real Estate's Series 25 Bond, Adv. Guy Gissin, asked the court to appoint an attorney as an observer with no management rights in the company as liquidator in the event that the debt settlement proposed by the company did not result in a binding settlement.

The observer will be able to participate in all Delek Real Estate board meetings, to demand and receive documents and other items he needs, including items on company transactions in previous years, to appoint experts, and, in general, to ensure that company affairs are managed properly in a way that does not discriminate against any of its creditors.

Delek Real Estate's share price fell 1.6% by midday today to NIS 0.18, giving a market cap of NIS 72 million.

Published by Globes [online].

[grollfam] 06/4/2012 06:36

Delek Real Estate ordered to pay creditor

Delek Real Estate was foiled in its bid to bypass the High Court of Justice. The real estate company, which belongs to Yitzhak Tshuva's Delek Group of companies, must pay a creditor NIS 1.35 million, exactly as the High Court had ordered, Tel Aviv District Court Judge Varda Alshech ruled yesterday. Alshech also slapped Delek with NIS 50,000 in court costs, which is considered very high. Delek had petitioned the district court, which is discussing its proposed debt arrangement with bondholders, for permission not to pay the creditor. The company argued that the High Court ruling mistakenly prioritized this creditor above others, and asked that the creditor in question (whose lawyer describes him as disabled and living with his wife on NIS 5,900 a month ) be bundled with all other creditors in the debt arrangement. But Alshech pointed out that the creditor in question has no bonds and isn't party to the debt settlement, so should be paid. (Shelly Appelberg )

[grollfam] 04/4/2012 10:17

Delek Real Estate stalls payment by appealing Supreme Court decision, in a lower court

Company argues that payment now would constitute preference for one creditor over others.
By Shelly Appelberg





Delek Real Estate is defying a Supreme Court order to pay a creditor NIS 1.35 million, TheMarker has learned. Rather than complying with the order, the company turned to the district court overseeing its debt settlement with bondholders to argue that compliance with the order would constitute undue preference for different creditors. Tel Aviv District Court Judge Varda Alshech agreed to allow the company to postpone payment until her final decision on the matter.

Described by his attorney, Zohar Greenberg, as "a disabled elderly man who, along with his disabled wife, lives off a monthly income totaling NIS 5,900," the creditor accuses Delek Real Estate of exploiting its debt settlement with bondholders to avoid paying what it owes him. Greenberg insists the two procedures are unrelated.

Had it asked the court for a stay of proceedings allowing it to postpone payments to all creditors until reaching a settlement, Delek Real Estate could have avoided payment. The creditor claims that, as long as there is no stay of proceedings, the company is obligated to pay its debt to him. "The company is conducting a 'deluxe stay of proceedings' - without any obligation or court supervision," argues Greenberg.

"The company hasn't petitioned for a stay-of-proceedings order, despite having ceased payments but, on the other hand, is incapable of paying its debts," said Alshech, commenting on the problematic nature of Delek Real Estate's request that the creditor be included in the framework of a settlement. "So the question is whether the company is trying to have it both ways," she wrote. Alshech did, however, give the company a temporary reprieve from paying the debt.

The case revolves around a NIS 7.23 million claim made by the creditor against Delek Real Estate in 2007. The creditor, who ran a pancake restaurant on property owned by the company in Bethlehem of Galilee, claimed he lost business due to the parking lot that served the restaurant becoming blocked, saying the company misled him and had breached their contract.

A district court partially accepted the claim, ruling that Delek Real Estate pay the plaintiff NIS 2.7 million. After unsuccessfully petitioning for delay of the payment, the company appealed to the Supreme Court, which allowed part of the payment to be postponed, but ordered Delek Real Estate to pay NIS 1.35 million while a final decision on the case remained pending.

"Payment to the creditor could contradict the principle of equality between creditors and favor one's interests over those of the others in the same class," Delek Real Estate explained in its brief for delaying collection proceedings.

"Being a creditor with a bailiff's order doesn't grant him any special right, as the company declared it has no intention of changing its assets in the interim while negotiations are ongoing with the bondholders," the company stressed.

Delek Real Estate said that it believes the district court ruling was wrong and that the plaintiff isn't entitled to any money, and therefore appealed to the Supreme Court, which hasn't yet rendered a verdict.

[paperclip3] 04/4/2012 00:14

Kenny and Grollfam, many thanks for keeping this board alive. I always read your comments, and I find them most helpful

[grollfam] 02/4/2012 22:26

yes, I think we need the details of this deal, hopefully, DGRE & RBS have taken a stake in the business in exchange for debt & Rental received........

[kenny] 02/4/2012 22:14

Thanks grollfam, I had not seen that. Onwards and upwards?!?!

[grollfam] 02/4/2012 21:46

KENNY, SEEN THIS ??????

NCP agrees £500m debt and rent deal2 April 2012 | By Mike Phillips Britain's biggest car park operator has agreed a debt-for-equity swap which will involve its lenders writing off £500m of loans in order to save the company, propertyweek.com can reveal.

[kenny] 02/4/2012 19:57

Accounts for 2011 have today become available, on request from the company. Quite a lot to digest, 81 pages, and I have not absorbed it all but:

NAV at 31.12.11 is now a negative 2p but this is after swap liabilities rose by £93m (69p per share) and assets were written down by another £301m. It is also before £30m (22p per share) is written back on a German non-recourse bank loan being waived on completion of terms the company has already agreed with the bank; which will be satisfied during 2012.

Value finally agreed, of £45m, for compulsory purchase of 3 car parks but that £45m to be fully absorbed in repaying loans expiring in the near future.

Cash, which I think is all blocked money, is £39m almost identical to where it started the year.

In March 2012 they did buy the 30% of Buckingham Gate they did not own for about £6.3m. Not yet completed on the purchase – perhaps they intend to sell once they own 100% as there seems no reason to retain properties in DGRE that are not part of swap arrangements.

NCP re-structuring is hoped to be in place by end of April – if not pretty dire consequences could follow. The pain seems to have been spread around so all parties seem interested in doing a deal to avert that albeit at date of signing accounts, 31 March 2012, the deal is not yet signed/approved by the numerous parties involved. Part of the agreement is that DGRE can take back up to 22 car parks which have development potential albeit their rent is decreased.

Assuming the deal gets done on NCP, hopefully we are past the low point but I am not predicting that with great confidence! Another development outside of these accounts is that the courts in Israel dealing with the DRE bondholder hearings have said they expect Mr T to dig deeper into his own wallet to come to terms with the bondholders. That certainly gives Mr T a good incentive to ensure that DRE's main asset, DGRE, maximises its returns on sales; as soon as the property market allows – and future buybacks and dividends; as soon as the NCP deal is finalised.

Never a dull moment with this company!!

[grollfam] 29/3/2012 06:29

thanks Kenny, please let me know when DGRE release accounts for 2011

[kenny] 28/3/2012 22:37

Another NIS 200m written off the NCP car parks in the 4th quarter is probably accounted for in the 42p NAV at which the last buyback was priced at - would seem to explain why that buyback price was so low:
=====================================================
NIS 1.3b written off Delek Real Estate's UK car parks
The figure emerges from the financials of The Phoenix Holdings, released today.
Ron Stein and Avi Shauly 28 Mar 12 19:22

The financial statements of The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5), published today, reveal that a new valuation carried out for Linchfield, which holds a portfolio of 127 car parks in the UK, caused heavy losses last year to shareholders in the car parks company, headed by Delek Real Estate Ltd. (TASE: DLKR, which, like Phoenix, is controlled by Yitzhak Tshuva.
The updated valuation carried out for Linchfield in December 2011 reduces the value of the car parks by some NIS 1.3 billion. Phoenix owns 5% of Linchfield, Delek Real Estate owns 59%, CPA Yitzhak Suari owns 4%, Giron Development and Building Ltd. (TASE: GRON) owns 8%, and the rest is owned by overseas investors.

NCP, the main lessee of the car parks, has run into a difficult cash flow crisis, and may undergo a debt arrangement. The banks have therefore required the lessor company (Linchfield) to carry out a new valuation of the car parks, and to pay a higher interest rate, in accordance with the rise in risk in the assets. This was apparently also the reason that Delek Real Estate sought a debt arrangement with its creditors last July.

Phoenix wrote NIS 49 million off its investment in Linchfield in the fourth quarter. Delek Real Estate, which has still not released its financials, is expected to make a write down of some NIS 200 million in the fourth quarter, making it a NIS 700 million write down over the year. Linchfield will be an important part of Delek Real Estate's debt arrangement.

Negative returns on the capital market, a NIS 113 million write down of goodwill in the provident fund activity of investment house Excellence Investments Ltd. (TASE: EXCE) (resulting from the management fee reform), and the write down on the investment in the car parks in the UK, meant that insurance group Phoenix presented a weak quarter. It reported a loss of NIS 74 million, but in the first three quarters it had good results relative to the rest of the sector, so that for the full year it posted a net profit of NIS 54 million, 83% lower than in 2010. Taking into account investment losses posted to its balance sheet, the company lost NIS 30 million last year.

Published by Globes [online], Israel business news - www.globes-online.com - on March 28, 2012

[kenny] 21/3/2012 08:21

I though the same but it does appear they did own 70% before. It could still be an old article; we should know for definite when the accounts for 2011 become available in April.

[grollfam] 20/3/2012 18:41

kenny, where & when was this article published?

[kenny] 20/3/2012 17:29

Sunday, 11 Mar 2012
Delek Real Estate Ltd announced that its fully owned subsidiary, Delek Global Real Estate plc, has signed an agreement to acquire a 30% stake of property rights in a property known as Buckingham Gate, located in the city of London, United Kingdom. The deal is worth GBP 6.7 million.
==================================================================

Buyout of the 30% of this property they did not own. The price of £6.7m would be excluding the assumption of debt attached to that 30%. 100% of the property valued at £72m in 2008.

Don't understand why they bought the other 30% but presumably part of some clever plan!!

[grollfam] 17/2/2012 13:07

yup, think this is just postering to squeeze a better deal out of Tshuva.....

[kenny] 17/2/2012 12:42

Grollfam, the third set of bondholders have forced the situation but, being Israel, it appears they cannot even agree that the call notice is legal! Doing business in Israel must be really difficult if everything is disputed. Still must be great to be a lawyer in Israel.

Presumably, DRE go the Courts for bankruptcy protection, so nothing changes for us DGRE shareholders.

======================

Delek Real Estate B25 bondholders pull trigger

The holders of Delek Real Estate B25 bonds, owed NIS 600 million, have called in their loans, which means they are rejecting any arrangement and are pushing for the company's liquidation. Delek Real Estate's legal representative, Amir Bartov, demanded to see the documents that led the bondholders' trustee to state that 94% of the bondholders who voted in favor of calling in the loans are not in a state of conflicted interests. Bartov claims the majority was evidently achieved improperly. He claims that only bondholders who voted in favor of calling in the money immediately were counted; while bondholders who voted in favor of calling in the loans conditionally were not counted. But the trustee is refusing to hand over the documents, claiming the information is confidential and the bondholders did not empower him to disclose it. In any case there are no grounds for arrogant behavior by the company, the trustee Zvi Gissin wrote back. "Even though the company attests that it is bankrupt ... there is considerable doubt regarding that," Gissin wrote. "The company's attempt to meddle with the discretion of the trustee representing bondholders to whom Delek Real Estate owes NIS 600 million is not proper under any situation, when it is clear that the parties have categorically opposite positions."

[kenny] 26/1/2012 12:29

grollfam, I agree with your view and I think we are left with a company which should be able to churn out some very good dividends between now and 2017. In 2017 we should get another big payout; if all goes well.

I did tender some of my shares @ 42p because in absolute terms, my holding in DGRE is still a substantial sum. Probably, not the right decision but it's one of those situations where the correct course of action is not entirely clear so I wished to hedge the future outcome.

[grollfam] 26/1/2012 11:41

KENNY,

Delighted this has happened...Will take the pressure off DGRE to sell any further assets below true value & am happy I did NOT tender any shares @ 42p