Delek Glbl Share Discussion Threads

[grollfam] 06/9/2012 08:40

Kenny

Note Tshuva is paying Delek Real Estate's other shareholders NIS 21 million and delisting the company from the TASE.

Good for DGRE as he will now control 100% of DRE & add value for himself via DGRE which he will now beneficially own 88%

[grollfam] 06/9/2012 08:38

Delek Real Estate reaches debt settlement
Bondholders will receive up to NIS 830 million on the NIS 2.1 billion owed.
Avi Shauly 6 Sep 12 10:29


Delek Real Estate Ltd. (TASE: DLKR), controlled by Yitzhak Tshuva, reached a debt settlement with the company's Series 25 bondholders early this morning. Under the settlement, the bondholders of the company's three bond series will receive NIS 750-830 million on the NIS 2.1 billion owed.
Under the new debt settlement, which extends for 26 pages, Tshuva will pay Delek Real Estate's other shareholders NIS 21 million and delist the company from the TASE.

Delek Real Estate's Series 4 and 5 bondholders are expected to support the debt settlement. A minor dispute on the sharing of a NIS 50 million payment by Tshuva personally to the bondholders remains outstanding. The bondholders will meet next Tuesday to approve the settlement.

Published by Globes [online], Israel business news - www.globes-online.com - on September 6, 2012

[kenny] 05/9/2012 14:32

Thank grollfam - I had overlooked those. Celle is 62.5% owned so that will be €4.18m and Metro will be €10.2, as you state, total about 8.4p per share. All these sales will no doubt impact the figures I gave above for annual net rental income but amount to a sizable dividend or buyback.

[grollfam] 05/9/2012 13:44

Thanks Kenny
I have not yet studied the accounts, but it appears that approx 6.7M Euro will
be free cash flow from the CELLE sale & 10.2M Euro will flow from the Metro portfolio if theses sales are completed......
This cash could be used as a special Divi, or a buyback.....

[tiltonboy] 05/9/2012 13:00

I am happy to take 5/6p a year in dividends, while I wait for the "swaps" to unwind.

If I could see 75p, I would probably take it.

[kenny] 05/9/2012 12:47

....and the Kinnard House net proceeds are equal to 5.9p per share. Buckingham Gate is, I estimate, worth 10.3p per share (maybe more because the figure I use assumes a loan of £72m; equal to 100% of valuation at 31.12.08).

[kenny] 05/9/2012 11:17

The accounts for the six months to 30.06.12 would suggest "clean" net rental income of 5.46p. This figure is my estimate and excludes all one-off items such as revaluations and gains on bank loans written off. It is only an estimate for those six months and earnings in those six months have, effectively, been utilised to finance the 4th buyback in January 2012.

However, allowing for the increased interest rate on the NCP debt and the rent reduction on 22 NCP properties will lead to a material reduction in net rental income going forward. I estimate net rental income will be 6.1p per annum, or 3.05p per six months.

A big reduction, but if in future we receive 6p per annum in dividends it is still a handsome return post the buybacks to date. Also, because the cash in the NCP structure is blocked until the NCP restructuring is done, there has been a build up of cash which we can expect in due course as a dividend or buyback. This blocked cash is currently equal to roughly 10p per share.

[kenny] 03/9/2012 08:16

Interesting that the company anticipates that the Buckingham Gate project will produce a good part of the funds to pay bondholders - of course after paying we minority shareholders our pro rata share! The property is located in a prime location so presumably the plan is for luxury flats priced in the millions.
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Court gives Delek Real Estate 10 more days to get bondholder support
The appointed liquidator, attorney Hagai Olman, will step in if an agreement isn't reached by September 12.
By Shelly Appelberg | Sep.03, 2012 | 4:10 AM

Delek Real Estate was granted a 10-day extension Sunday morning by Judge Varda Alshech of the Tel Aviv District Court, in order to obtain the support of a 75% majority of its bondholders for a settlement offered by controlling shareholder Yitzhak Tshuva.

The appointed liquidator, attorney Hagai Olman, will step in if an agreement isn't reached by September 12. Tshuva's latest proposal is to provide bondholders with NIS 750 million in seven installments bearing 6% interest.

"This is a situation where the company is insolvent and there is no agreed-upon settlement," ruled the judge. "The company's request is most unusual and problematic. The state's official receiver was justified in claiming Delek Real Estate secured itself a 'deluxe' stay of proceedings: With all due respect, it isn't at all certain that the value of the bondholders' claims against the company, and its controlling shareholder Yitzhak Tshuva, are ostensibly baseless."

"Negotiations were long and hard: Nobody enjoys going sleepless night and day," said Amir Bartov, Delek Real Estate's attorney, explaining that all the bondholder delegations agreed to the postponement request. "The liquidation option isn't disappearing, and the company's expenses are being paid by the controlling owner. At stake are losses in the hundreds of millions of shekels versus a most significant contribution by the company's controlling owner. Some want more while others are satisfied. Such a contribution is unprecedented in Israel."

Alshech cut him off, interjecting: " (Lev ) Leviev put in NIS 750 million, so don't go telling me this is a contribution never before seen in Israel. I am very familiar with the Africa-Israel case." Alshech was the presiding judge in that company's debt settlement.

Bartov tried claiming in response that the security offered in this case is better, but Alshech answered that Leviev offered bondholders the money within three years rather than seven.

"The current settlement will obtain more than a 75% majority," added Bartov. "The B4 and B25 (bond series ) delegates signed a memorandum of principles, and the B5 trustee announced that he agrees to putting off appointing a temporary liquidator and having a postponement. We are also asking approval to go ahead with the Buckingham Gate deal, an integral part of the new settlement offer."

The latter deal, involving a sale of assets in a project near London's Buckingham Palace, is expected to generate funds that would be vital to Delek Real Estate in meeting its payments.

Guy Gissin, representing series B25 bondholders owning NIS 600 million of the debt, explained to the judge that the current settlement offer has an upside for the creditors, seeing NIS 830 million of their money. However, series B5 bondholders with NIS 1.4 billion of the debt are still on the fence regarding the current offer.

[kenny] 02/9/2012 22:29

Agreed. then I think we get a recommencement of substantial distributions.

[grollfam] 02/9/2012 19:24

Thanks for info Kenny....

need to get finality on liquidation of DRE...

[grollfam] 02/9/2012 18:40

kenny, can u email me accounts ??? [e-mail] thanks

[kenny] 02/9/2012 18:20

Sunday:

Delek Real Estate Ltd. (TASE: DLKR soared 37.5% after the Tel Aviv District Court decided to postpone putting the company into liquidation.

[kenny] 02/9/2012 15:33

Accounts to 30.06.12 are now available and some of the many changes are as follows:
1. NAV has moved from 0p to 31p at 30.06.12 mainly because on sale of a German property the excess non-recourse bank loan, of £48m, was written off by the bank and therefore recognised as a profit in the accounts.
2. Still no finality in relation to the NCP re-structuring but if it closes then DGRE's interest increases to 73%. This will be great providing there is, eventually, some net value in the NCP properties.
3. The Kinnard House property sale has exchanged with a 10% deposit paid.
4. The plans to develop the Buckingham Gate property to residential from commercial are held up pending an agreement with the bondholders in DRE.
5. The whole of the £54m proceeds from the compulsory purchase of 3 NCP properties will be applied to repay debt.

In summary, there are still numerous "balls in the air" and the position is still very unclear. Therefore, despite the fact numerous "situations" have been resolved there are still some material issues to be resolved. I believe there is a lot more value in DGRE than 31p per share but it may take quite a while for the remaining NAV to emerge; with dangers along the way.

[kenny] 01/9/2012 22:30

At last, a bit of good news for a change:


Delek exchanges on Kinnaird House sale

By James Buckley - Tuesday, August 28, 2012 15:45

Delek Global Real Estate has exchanged contracts to sell Kinnaird House on Pall Mall in a deal which will allow the Israeli property company to repay the securitised loan on the property.

In a note to the Tel Aviv Stock Exchange, Delek said it had agreed to sell the building at 1 Pall Mall for £57m - £2m higher than had been agreed with a previous bidder in June before the deal collapsed a week later.

Kinnaid House is being sold to a private overseas investor, with the deal scheduled to complete on 4 September.

Kinnaird House has been on the market through Jones Lang LaSalle, which was seeking around £67.5m for the asset, reflecting a yield of 4.95%.

Delek said it would use £48.6m of the proceeds to repay the securitised loan on the property. Bondholders in the Nemus Arden II CMBS, issued by HSBC in 2006, would have been repaid at the July interest payment date if the sale to the previous bidder had gone through.

Delek also said it expected to generate net cash flows as a result of the sale of around £8m. However, the proceeds after debt repayment cannot be reinvested without permission from Tel Aviv District Court.

The news of the deal comes after bondholders yesterday failed to agree Delek Real Estate's debt settlement, meaning that a court-appointed receiver will almost certainly take control of Yitzhak Tshuva's flagship property-development company next week.

On Monday, only 30% of bondholders of Delek Real Estate voted on the company's proposed debt settlement.

As a consequence of the lack of attendance, the proposed debt settlement did not have the necessary 75% majority of bondholders, except for the Series 4 Bond, the smallest of the company's three bonds, with an outstanding debt of NIS 150m (£23.67m).

The Kinnaird House loan comprises 18% of the outstanding Nemus 2006-2, which has a scheduled maturity in May 2013. There is no on-going LTV covenant, however there is a cash trap mechanism set at 1.12x 76.4% of the income, secured against McKinsey & Company UK.

The building was redeveloped behind a retained period façade in 2001 to provide 71,504 sq ft, including 61,296 sq ft of office space arranged over ground and six upper floors, as well as 9,851 sq ft of restaurant space at lower ground floor level.

The asset is held on a long leasehold from The Crown Estate expiring 11 November 2126, and geared to 15% of rents receivable. It is fully let producing a gross passing rent of £4.1m pa and a net passing rent of £3.53m pa. The building has a weighted average lease length of 13 years including the reversionary lease to McKinsey & Company.

The offices are entirely let to McKinsey & Company United Kingdom until March 2018 (6.5 years unexpired); and the restaurant is let to Out of Africa Investments on a lease until September 2037 (26 years unexpired).

Jones Lang LaSalle declined to comment.

[grollfam] 27/8/2012 06:52

D-day for Delek Real Estate, as bondholders vote on debt accord

A 'no' vote seems likely, which means a court-appointed receiver will almost certainly be taking control of Yitzhak Tshuva's flagship property-development company next week

By Shelly Appelberg and Michael Rochvarger | Aug.27, 2012 | 5:05 AM

If controlling shareholder Yitzhak Tshuva doesn't get Delek Real Estate's bondholders to agree on a settlement in a vote called for Monday, a temporary receiver will be appointed next Sunday by Tel Aviv District Court Judge Varda Alshech.

That move would set the ball rolling for secured creditors holding additional company debt of over NIS 600 million - Bank Leumi, Bank Hapoalim, Israel Discount Bank, Mizrahi Tefahot Bank, Mercantile Bank and Phoenix Holdings (another Tshuva company ) - to appoint a receiver over its assets.

A preliminary vote held Thursday night on a proposal involving a 60% to 88% haircut failed to amass the necessary majority for a NIS 2.15 billion settlement.]

The vote followed a secret meeting held last Sunday between Tshuva, Delek Real Estate CEO Eran Meital and Edward Keller, the representative of the militant holders of NIS 600 million in series B25 bonds.

Keller proposed an overall cash settlement by Tshuva to replace the complicated multifold proposal on the table. Tshuva was apparently referring to such a deal when he offered to lay out NIS 500 million to NIS 550 million over a five-year span and erase the rest of the debt for a 75% haircut.

Delek urges investors to vote 'The market said its piece'

Tshuva needs to decide quickly whether to up his offer or go through with liquidation. But according to series B5 representatives, "The market said its piece and isn't interested in a settlement."

Delegates representing private bondholders said that "the settlement's collapse was unavoidable, and the results speak for themselves. Tshuva left us no choice. We have a set plan for the day after, whether the company goes into liquidation or negotiations continue."

Delek Real Estate responded that the settlement, contains a "significant and unprecedented contribution by Tshuva" amounting to hundreds of millions of shekels throughout the period of the arrangement.

"The company assumed, and still assumes, that the settlement alternative with all its components is better by a wide margin than liquidation," Delek said.

"Even the representatives [of the bonholders] opposing the arrangement sayd the value that bondholders would get is infinitesimal. There is still a chance for 70% of the bondholders who still haven't voted or expressed their opinion to utilize their rights to vote and make a decisive choice in favor of the settlement," the company said.

[grollfam] 26/8/2012 17:50

Let's wait until 2 September and see if a liquidation order is granted by the judge

[kenny] 26/8/2012 17:27

Bondholders fail to agree Delek Real Estate debt settlement
Only 30% of Delek Real Estate Ltd. bondholders bothered to vote on the company's proposed debt settlement.
26 August 12 16:18, Avi Shauly inShare.0
Only 30% of bondholders of Delek Real Estate Ltd. (TASE: DLKR), controlled by Yitzhak Tshuva, bothered to vote on the company's proposed debt settlement. Most of the voters were financial institutions, which are mandated to attend bondholders meetings and vote in them. In other words, 70% of the holders of the company's huge NIS 2.15 billion debt do not care whether there is a debt settlement or if the company is liquidated; certainly they do not care enough to undertake the necessary actions for voting.
As a consequence of the lack of attendance, Tshuva and Delek Real Estate's proposed debt settlement did not have the necessary 75% majority of bondholders, except for the Series 4 Bond, the smallest of the company's three bonds, with an outstanding debt of NIS 150 million. The votes by holders of the Series 5 Bond (NIS 1.4 billion debt) and the Series 5 Bond (NIS 600 million debt) were roughly evenly split, and so failed to pass muster.

The proposed debt settlement included a capital injection by Tshuva, which Delek Real Estate estimates at NIS 1 billion, but also a haircut of at least 60% on the debt.

Under Israel Securities Authority guidelines, investment institutions are mandated to vote on debt settlement proposals. Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), Menorah Mivtachim Holdings Ltd. (TASE: MORA), and Yelin Lapidot Investment House Ltd. were the investment institutions that voted in favor of the settlement. These three institutions together own about NIS 200 million of Delek Real Estate's bond's, or 10% of the total debt. Psagot Investment House Ltd., Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), Analyst IMS Investment Management Services Ltd. (TASE:ANLT), Meitav Investment House Ltd., and Altshuler Shaham Ltd. voted against the proposal.

The combination of an unattractive offer by Yitzhak Tshuva with an unwillingness to decide between two bad alternatives and a wide dispersal of private bondholders, were the reasons for the low voter turnout, said Adv. Gideon Kirsch, who represents the Series 4 bondholders.

A top capital market source said, "It is not worthwhile for the private bondholders to make the effort and be dragged into this whole mess or the results of the vote. The company tried to use this to claim that only those present at the bondholders meeting should have the right to vote, but Tel Aviv District Court Judge Varda Alshech ruled that every trustee voting on behalf of each bond series' creditors must vote. It is not possible to force a person with little financial interest to come and vote."

The next stage after tomorrow's vote will come on Monday, September 2, when Judge Alshech will appoint Adv. Hagai Olman as liquidator of Delek Real Estate, unless the parties reach a deal beforehand.

The TASE has suspended trading in Delek Real Estate's securities until the company announces the final results of the votes.

Published by Globes [online], Israel business news - www.globes-online.com - on August 26, 2012

[kenny] 24/8/2012 19:11

Thanks grollfam. Hard to know how things will develop from here.

However, perhaps a reassuing statement is "We have an organized plan for the day after the dissolution if the company..."

[grollfam] 24/8/2012 11:58

TRANSLATION FROM HEBREW IN TODAY,s GLOBE


delek bodholders reject proposals




The series bondholders and delivered by voted against the agreement, while bondholders series Wednesday voted ■ If no creditors will be given a new and improved arrangement - Judge Varda is expected to appoint a liquidator Alshich Delek Real Estate on September 2


The dismantling? Globes "has learned this morning (Friday) that the required majority was not achieved (75% each vote) to support the proposed debt settlement company, owned by Yitzhak Tshuva, bondholders - when the series bondholders and delivered by, Vote against the arrangement, while bondholders Series D voted for him.

It seems that now, after the arrangement fell - bondholders will gather on Monday (August 27), to creditors of the three series of bonds, when creditors will not be released if a new and improved, on 2 Vsftmr current expected Alsheich Verde, Deputy President of the District Court to appoint a liquidator to the company.

Despite the vote of the holders of the Series D Bonds' favor Arrangement, holders of large series - Series E holds about 1.4 billion debt to society, and a series delivered by holding $ 600 million of debt the company, voted against.

According to estimates, 100% partial creditors Series D voted arrangement, the series' votes 50-50 split, while the series delivered by - who opposed the arrangement along the way - voted "only" 55% of The Hague, The anti arrangement.

Vote on debt settlement Delek Real Estate's improved from last week, after the controlling shareholder agreed to waive the answer to the "ejection seat" in the arrangement, and the company promised to inject 250 million over the next five years, even if the company will enter insolvency proceedings.

Delek Real Estate's negotiations with its bondholders (debt of 2.1 billion) from a year ago. After numerous ups and downs, it seems that bondholders chose to give up their proposed debt settlement response, which included a haircut At least 60% (and higher result, for the larger series), and now very likely that the company will go dismantle - what will keep the bond holders with a few percent of the debt.

During discussions on debt settlement, represented the company CEO Eran Meital, the right hand represented Answer Wells era, and bondholders are represented by the law firm Claire - Binyamini.


Bonds delivered by representatives headed by Mr. Guy Gisin and Edward Keller, said in response to the failure of the arrangement that "the market has spoken."

Ohad Aloni, a leading organization of private bondholders representation of Attorney Yehuda Ressler and Mr. Assaf, however, said: "The fall of the arrangement was inevitable and the results speak for themselves - it is reading out loud and clear. Yitzhak Tshuva not really left us no choice, since all proposals were also amended and decomposition alternatives were worse. We welcome that that most financial institutions have discovered the obvious responsibility as representatives of public saving. We have an organized plan for the day after the dissolution if the company will go and whether there will be negotiations. "

[grollfam] 22/8/2012 16:32

TODAYS HAARETZ NEWSPAPER 22/8/2012

Delek's barbershop



Leumi's billion-shekel headache

Leumi also has its hands full with NIS 250 million of problematic credit to Delek Real Estate and Delek Belron International, a fully-owned subsidiary.

Delek Real Estate is attempting to reach a NIS 2.15 billion settlement with its bondholders, whose debt has no security backing at all - unlike the company's NIS 600 million in bank debt.

Leumi already recovered hundreds of millions of shekels from the company over the years, but the quality of security backing its sizable remaining debt is anyone's guess and the bank also stands a good chance of getting hit with a buzz cut.

Delek Real Estate's debt is backed by the Carmel Beach Towers in Haifa, a real estate and hotel project listed on its books at NIS 280 million - which everyone knows is inflated. The Belron debt is secured by an unlimited guarantee from Delek Real Estate which really has no value at all considering the latter's financial position.

Delek Real Estate offered Leumi NIS 130 million to walk away, reflecting a nearly 50% cut on its overall balance. Tshuva is expected to inject NIS 250 million into the company when settling with bondholders. The question is whether he'd be willing to dip into his wallet to help pay what is owed to the bank.

[kenny] 16/8/2012 19:06

Today's Haaretz newspaper:

Delek Real Estate made an urgent request to the court supervising tis debt settlement to allow its British unit to complete the sale of its Buckingham Gate property in London. The sale has been blocked by the court. Delek Real Estate rose close to 1%.

[grollfam] 09/8/2012 08:22

Kenny, I think this is old news rehashed ?????

[kenny] 09/8/2012 08:07

Today's Haaretz newspaper:

Delek Real Estate securities traded against the background of opposition by the representatives of Series Dalet bondholders to a proposed debt arrangement. The representatives came out in favor of dissolution of the company instead. In other developments on that front, Tel Aviv District Court Judge Varda Alshech required that the company as well as bondholder representatives present investors with their options in plain language regarding the implications of a debt arrangement versus dissolution. Delek Real Estate shares closed 2.5% higher in trading yesterday.