Debt settlement in the company Petrochemical received the required majority among the bond holders, and the approval means thatDavid Federman And his partners are on their way to take over the refinery in Haifa Bay (Bazen). According to the estimates of sources close to the settlement, it was passed by an overwhelming majority and as a result a report to the High Court is expected by Tuesday evening on the result.
company Petrochemical which is managed by Rafi Arad, is de facto insolvent, traded on the stock exchange this morning at a value of only NIS 4.2 million. The company’s main asset is shares in Bezen, where it shares the core of control with the Israel company controlled by Idan Ofer. Ofer’s attempt to sell his share of the controlling interest to the Hajj brothers in April of this year, led to the formulation of the new approved debt settlement, the purpose of which is to exercise the right of refusal granted to petrochemicals.
The meaning of the move is that the current controlling owners of petrochemicals, led by David Federman, are carrying out a move that constitutes the deletion of a billion shekels from the scope of the debts of petrochemicals. And in exchange for the injection of 100 million shekels, with new partners, they are on their way to take over oil refineries and complete the holding in the core of its control.
Petrochemical currently has three bond series: 1, 2, and 3 whose debt amounts to approximately NIS 1.23 billion. The holders of the bond series, Petrochemical’s de facto creditors, agreed to write off a debt amounting to over NIS 1 billion as part of the settlement . The bond holders will receive after the “haircut” a new series of bonds in the amount of NIS 245 million. When in addition a new series will be raised in the amount of NIS 485 million. The completion of the recruitment, whose road show is scheduled to begin next week, will generate the bulk of the amount with which Petrochemicals will purchase the shares in Zen from Hajj. In addition, as part of the settlement, the bond holders will also receive a kind of option on Petrochemical shares. Part of the profits that will accrue to them from the increase in the share price will be transferred to them.
The current controlling owners of Petrochemicals: David Federman, Yaakov Gutstein and Alex Pesal, are joined by new investors. The investors include Yona Vogel, who in the past served as the CEO of the Paz fuel company, David Bobrov, Vader Schwartz and Ohad Schwartz, who are the two sons-in-law of Benny Steinmetz. The Hajj brothers. The amount that the group of investors will flow in will be in the form of subordinated debt, and Petrochemical will use part of it, so that it will pay 550 million shekels for the purpose of purchasing shares in Zen from the company to Israel.
The settlement came after the controlling owners of Petrochemicals received a clear message from the Ministry of Finance, earlier this year, according to which the company is required to carry out the fundraising process, in order to be able to gain future control of Bazan. Petrochemical owns 15.5% of shares in Zan whose market value currently stands at NIS 713 million. Bezen shares have risen by 112% in the past year, with the main story that investors are hoping for is the price of oil.
In the last year, the price of a barrel of oil soared, and it currently stands at 95 dollars per barrel, a 38% increase over the past year. To this must be added the increase in the dollar exchange rate, which also has a positive effect on activity in Zan, since the prices of oil barrels are determined in dollars. These data are expected to continue to support the refinery business, at least according to the hopes of petrochemical investors. Despite the sharp jump in the stock in the strain In the past year, in a long-term view, the stock is still losing. In a summary of 3 years, the stock fell by 12% and after a period of 5 years, recorded a miserable return of -1.2%.
However, the real estate dreams that Hachim Hajj thought about when he was thinking about transplanting in the strain , a move that does not seem to have come to fruition with the approval of the new debt arrangement, are getting further and further apart. The plan to evacuate the refineries within a decade approved by the government, and build thousands of housing units in their place is cooling off. At the beginning of the week, we reported that the Editorial Committee of the National Outline Plan for Haifa Bay (TMA 75), which is expected to convene next week, will examine the restriction of all construction permits according to Section 78 of the Planning and Construction Law, with the aim of preventing the issuance of construction permits in favor of the continuation of petrochemical activities in Haifa Bay that are not compatible The same committee chaired by Liat Peled will examine, as part of formulating the alternative, to recommend to the National Council for Planning and Construction to publish a notice on the preparation of a plan according to section 77 of the law, within which, as mentioned, construction in the bay will be limited as much as possible.