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IDB seeks private equity backing for new restructuring deal

8 Jul 2013

tel aviv 2_sqIsrael’s IDB Holding has presented a new debt restructuring proposal, which reportedly is backed by private equity firms, to a Tel Aviv court following the collapse of the previous deal.

IDB said in a statement to the Tel Aviv Stock Exchange that it was in talks with other investors after Argentinean businessman Eduardo Elsztain decided against investing $75m, according to Reuters.

IDB reportedly has held talks with buyout firm KKR about a $400m loan, said Globes.

The group currently has a debt of ILS2bn ($546.4m) with a further ILS5.8bn ($1.58bn) owed by its unit IDB Development.

The new proposal would see IDB receive ILS841.5m with its debt holders acquiring 54 per cent of IDB Development. The debt holders would also receive ILS175m from the cash reserves with the bonds being withdrawn from trading.

IDB said in the statement, “Debt holders in IDB Holding are expected to benefit from the potential of an increase in the inherent value of the company’s assets, which are among the leaders in the economy.” This, it said, would be better than selling its assets under a liquidation.

Last month KKR bought clinical research organization PRA from Genstar Capital for $1.3bn.

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