Published 05:04 26.08.11
Latest update 05:04 26.08.11
Agrexco receiver will have to offer more than 18 agorot on the shekel
Bondholders and other creditors made it clear to Shlomo Nass the court-appointed receiver for Agrexco, and the state, that they stand firm in their demands to improve the settlement.
By Oren Freund
Dozens of creditors of Agrexco, the ailing agricultural export firm, came to Thursday evening’s meeting in Tel Aviv in an attempt to prevent what they consider to be a scandalous settlement proposed by the court-appointed receiver for Agrexco, Shlomo Nass.
On Tuesday, Nass proposed a settlement with creditors that was to be voted on Thursday, but the vote was put off to Sunday after a short meeting. Bondholders and other creditors made it clear to Nass, and the state, that they stand firm in their demands to improve the settlement.
The company has 57.8 million euros in assets at its disposal, in the face of 170 million euros in liabilities.
Secured and priority creditors would receive about 30 million euros under the deal, leaving unsecured creditors, including bondholders, with 27.8 million euros left. If Nass’ proposed settlement is approved, bondholders in particular will only get their proportional share of 5 million euros, representing a discount of 82% over the amount they were originally entitled to on the bonds.
Agrexco is to sell 9.9 million euros in real estate to pay creditors, and is expected to have cash on hand of 29.9 million euros.
Dozens of creditors of Agrexco, the ailing agricultural export firm, came to Thursday evening’s meeting in Tel Aviv in an attempt to prevent what they consider to be a scandalous settlement proposed by the court-appointed receiver for Agrexco, Shlomo Nass.
On Tuesday, Nass proposed a settlement with creditors that was to be voted on Thursday, but the vote was put off to Sunday after a short meeting. Bondholders and other creditors made it clear to Nass, and the state, that they stand firm in their demands to improve the settlement.
The company has 57.8 million euros in assets at its disposal, in the face of 170 million euros in liabilities.
Secured and priority creditors would receive about 30 million euros under the deal, leaving unsecured creditors, including bondholders, with 27.8 million euros left. If Nass’ proposed settlement is approved, bondholders in particular will only get their proportional share of 5 million euros, representing a discount of 82% over the amount they were originally entitled to on the bonds.
Agrexco is to sell 9.9 million euros in real estate to pay creditors, and is expected to have cash on hand of 29.9 million euros.
It is also counting on an estimated 18 million euros in proceeds from the sale of business operations at this point.
The proposed sale of business operations to the Kislev group, however, is not a sure thing, and the proposed settlement offer even acknowledges “various difficulties” regarding the offer from Kislev.
The Plant Production and Marketing Board currently has a 55% stake in Agrexco, the state holds another 30%, and the Egg and Poultry Board owns 3% of Agrexco stock. Tnuva has another 11%. Over the past two months, the credit rating of Agrexco, a company that exports 400,000 tons of agricultural produce a year and employs more than 500 people, was lowered 11 notches by the Midroog agency.
Furious institutional investors holding Agrexco bonds have been seeking to get the state to kick in some funds to resolve Agrexco’s financial problems, pointing to the fact that in similar circumstances the state has not been shy about asking major individual investors whose companies have run into trouble to dig into their own pockets to bail them out.
The Plant Production and Marketing Board currently has a 55% stake in Agrexco, the state holds another 30%, and the Egg and Poultry Board owns 3% of Agrexco stock. Tnuva has another 11%. Over the past two months, the credit rating of Agrexco, a company that exports 400,000 tons of agricultural produce a year and employs more than 500 people, was lowered 11 notches by the Midroog agency.
Furious institutional investors holding Agrexco bonds have been seeking to get the state to kick in some funds to resolve Agrexco’s financial problems, pointing to the fact that in similar circumstances the state has not been shy about asking major individual investors whose companies have run into trouble to dig into their own pockets to bail them out.
