צילום: KOKO // Nochi Dankner

Argentine Jew to invest $75 million in Dankner's troubled firms

Israeli businessman gets last-minute reprieve • IDB hopes that Argentine investment will help company pay back its debt, estimated to be in the billions • Bondholders ask court to compel company to adopt rehabilitation plan.

The latest drama involving Israeli tycoon Nochi Dankner, who has been dealing with a very difficult financial crisis of late, has taken a fresh turn.

Dankner, who is millions of shekels in debt, returned to Israel from Argentina after having signed a deal Thursday with Argentine Jewish businessman Eduardo Elsztain, who agreed to invest in IDB, the company in which Dankner is the controlling shareholder.

IDB shared the details of the deal with its investors on Friday.

The new deal splits the investment into two parts: Elsztain will invest $57 million in IDB and another $18 million in Ganden Holdings, making a total investment of $75 million.

IDB currently owes some 1.8 billion shekels ($500 million) to bondholders, and 206 million shekels (about $57 million) to various banks. Ganden's debt to Bank Leumi is estimated at some 450 million shekels ($125 million) and to Bank Mizrahi at another 80 million shekels ($22 million).

Under the new deal, Elsztain will hold 30.77% of Ganden's shares. The deal will also open the door for additional investors to come in. Elsztain will be named deputy chairman of the Ganden board of directors.

All in all, Elsztain will have invested a total of $100 million. He has already invested $25 million in the past, and will invest another $75 million under the new agreement.

Meanwhile, Judge Eitan Ornstein was scheduled to deliberate on Sunday on the IDB bondholders' request to legally impose rehabilitation measures on the company.

In recent days, the opinions of other IDB creditors have also been made public. In general, the opinions were against the bondholders' request. One reason is that the bondholders suggested a plan that would essentially allow them to take over the entire group, which could cause greater damage to creditors higher up on the pyramid.

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