In a meeting Sunday, Delek Real Estate Ltd. bondholders refused to heed owner and tycoon Yitzhak Tshuva's request for a 21-day deferment on the repayment of NIS 300 million in debt. Bondholders agreed to negotiate the matter and said they would accept the deferment if Tshuva pays NIS 50 million up front. The current date for repayment is Sept. 3, 2011. Two weeks ago, Tshuva announced that he would hand over control of Delek Real Estate to a U.S. equity fund, which will in turn absorb his bondholder debt. The fund's assets are worth at least $5 billion, and this would be their first investment in Israel. Tshuva and the fund have signed a letter of intent, stipulating that the fund will provide Tshuva with NIS 500 million, earmarked specifically for the repayment of debt to bondholders. Tshuva also committed to loaning the company NIS 100 million, as well as forgiving a debt of NIS 120 million currently owed to him. According to Delek Real Estate Ltd., the agreement is contingent upon the U.S. Equity Fund adhering to the structuring of debt with the bondholders, which is NIS 2.2 billion. Specifically, this means the debt must be paid in full. However, there may be debt rescheduling in terms of the debt principal's repayment dates as well as fluctuations in the interest incurred by the debt. Labor MK Shelly Yachimovich supported the bondholders' tough stance. "Their vote is positive. It reverts to basic principles he who borrows must pay, not pass on their debt to a third party by stalling or financial acrobatics," she said. "This is an important lesson for the economy's big borrowers, who are surprised when they are told 'this is it' and have to adjust.'"