Is the control of the credit company Credit Unit which became entangled following serious irregularities and is at the center of an investigation by the Real Estate Authority, is it about to change hands? Globes has learned that the veteran stock market skeleton trader, attorney Victor Tshuva, heads a group of investors that submitted an offer to acquire control of Younet Credit at the beginning of the week with an investment of 25 million Shekel against the allocation of shares.
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According to the proposal, after a private placement and the forfeiture of Yonet shares currently held by the three current controlling owners (Shlomo Isaac, Shay Panso and Tzachi Azer), Adv. , unless the bidders request to extend it, and it includes several conditional conditions. The first of which is that the money that the investors will pay for the company’s shares will not be used to pay off the debt that Unit Credit accumulated under the previous owners.
This is the second offer to acquire control of Younet Credit, after in mid-September one of the controlling owners of the competing company Opel Balance offered to purchase control for about NIS 15 million. This is Oded Eitan, who owns about 7% of shares opal and serves in it as a director, who submitted the purchase proposal together with his partner Tal Tzikorel.
Mionet Credit stated that the company is considering the offer, while trying to pay the full debt to its creditors.
The stock plunged 90% before trading in Tel Aviv was suspended
Following irregularities found in Yonet’s books in May of this year that developed into bad debts estimated at tens of millions of shekels at the company’s Nazareth branch, Yonet Credit’s shares fell by about 90% to a negligible value of less than 20 million shekels (trading in the company’s shares was suspended at the end of June).
An application for the approval of a debt arrangement submitted by Yount Credit to the court about two months ago shows that the extent of its debt is NIS 112 million, mainly to buyers of private bonds, while its creditors also include several well-known names from the world of non-bank financing, led by the Yaakov Finance company controlled by Shaul Navi .
Tshuva’s investor group demands that the court approve a creditor arrangement and re-organization of the company, but as mentioned demand that all financial obligations be repaid exclusively from the company’s credit portfolio, while new assets will be brought into the company after the settlement is completed, including the payment of the investor group if the deal does go through to practice, and the company’s foreign exchange activities will not be used to pay off liabilities before the transaction is completed.
They also demand that all warrants assigned to Younet Credit be canceled, whether they are tradable warrants or non-tradable warrants. The investors also require court approval for the appointment of directors as well as approval for calling a meeting to appoint external directors. Finally, they demand to receive all the account books of Unit Credit in order to be able to publish financial statements.
“Younet is able to pay its debts to creditors, provided that an investor joins”
Younet Credit did not publish its financial statements for the first and second quarters of 2022, therefore trading in the company’s shares was suspended. The accounting firm EY Israel even resigned from his position as Unit Credit’s auditor and, in an unusual step, withdrew the review of the reports he made for the company starting in 2020.
As part of the investigation carried out by the Securities and Exchange Commission, a series of senior officials of the company were investigated on serious suspicions, including the former chairman Moshe Kahlon, who resigned from his position when the affair began, and the three controlling owners of Yonet.
Avi Kaminsky, CEO of KCR, which was hired by the board of Younet Credit for the purpose of reviving the company, said today that Younet will continue to act with all the tools at its disposal in order to promote a creditor settlement. Kaminsky also said that Unit Credit is able to pay its debts to creditors, and this is given that an investor with financial capabilities joins to lead the company and promote activities aimed at renewing growth while neglecting loss-making activities.