20 August 12 11:42–Psagot Investment House Ltd., Israel’s largest investment house, is beginning to prepare for possible insolvency by IDB Holding Corp. Ltd. (TASE:IDBH), controlled by chairman Nochi Dankner. Yesterday, Psagot sent a letter to Hermetic Trust Services (1975) Ltd., Kalden Escrow Company Ltd., and Strauss Lazar & Co., the trustees of IDB Holding’s series 3, 4, and 5 bonds, calling on them to take every possible action to protect and preserve the bondholders’ rights.
In the letter, a copy of which “Globes” has obtained, Psagot says that IDB Holding’s financial report for the first quarter of 2012 states that it has a shareholders’ equity deficit of NIS 634 million, and that the company’s auditors drew attention to this with regard to management’s plans for dealing with the company’s financial situation.
Psagot notes that due to the “warning sign” (emphasis in the original – H.K.), IDB Holding included in its board of directors report a projected cash flow statement, which states that the company requires NIS 375 million from other sources through the end of 2013 in order to be able to service its debt. “In practice, there is no certainty (emphasis in the original – H.K.) that the company will be able to obtain these other sources on the dates needed to meet its commitments when they fall due,” says Psagot…Read More>>