Factory company PetrochemicalsWhich has been in a state of practical insolvency for the past decade, offers its bondholders a principled outline for a comprehensive debt settlement, based on the exercise of the right of refusal to purchase 16.9% of the oil refineries (BZN) from the Israel Company. From entities interested in financing the company the right of refusal to purchase shares BZN from The Israel Society.
Petrochemical currently holds 15.46% of the shares BZN , Of which about 13.3% are defined as controlling shares and the balance as free shares. The Israel Company holds 24% of the shares in ZEN, of which about 16.7% are defined as controlling shares and the rest as free shares.
In November last year, the Company granted Israel several institutional entities, options for 22 months, to purchase from it the free shares (7.3% of ORL) at a price of NIS 1.15 per share and a total consideration of NIS 269 million. And last week she signed an agreement for the sale of the Hajjaj Real Estate Group, which is controlled by the Tzachi and Ido Hajj brothers.
Under the agreement, it was stipulated that Hajj Group It will purchase from the Israel Corporation its share (16.7%) in the controlling shares in BZN for NIS 588 million and at a price of NIS 1.1 per share. That the institutional bodies did not exercise the options to purchase them.
The signing of this transaction gives Petrochemicals the option of exercising the two rights set forth in the OECD control agreement – the right to join and the right of refusal. The option to step into Hajjaj’s shoes and purchase the controlling shares from the Israel Corporation at this price.
However, in view of the fact that the transaction between the company and the Hajj Group was made at a significant discount to the price of the BZN share on the stock exchange, only the right of refusal is perceived as economically viable for them. “H.
According to the outline of the proposed arrangement, the four series of Petrochemicals’ bonds will cease foreclosure proceedings or any other procedure for immediate repayment and / or realization of liens. Petrochemicals will exercise the right of refusal through financing from potential investors The company in BZN shares will reach approximately 32% of BZN’s share capital.
After exercising the right of refusal, Petrochemicals will offer its bondholders to receive shares in the value of their debt, or according to their share in the specific series of liens (against the write-off of the company’s debt to those holders), provided that the total amount of shares in the debt will not exceed 8%. From BZN shares. So that after the division, petrochemicals will be left with controlling shares at a rate of 24% of BZN (24% is the minimum threshold for BZN control).
The bondholders who waive the option to exchange debt in shares will remain with the lien they currently have on BZN shares owned by the company and in addition will be entitled to an increase in the value of the right of refusal shares.