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TEL AVIV, Israel,
February 5, 2013 /PRNewswire/ --
Elbit Imaging Ltd. ("EI"or the"Company") (TASE, NASDAQ: EMITF) announced today, that on
January 31, 2013, a subsidiary of the Company, Plaza Centers N.V., of which approximately 62.5% of the outstanding share capital is owned by the Company ("Plaza"), published a letter that Plaza received from the trustees and representatives of the holders of Plaza's Series A and Series B debentures that demanded that Plaza desist from distributing a dividend from Plaza to its shareholders and stated that legal proceedings may be taken in the event that the Company proceeds with the distribution of the dividend.
The expected delay in the distribution of the dividend from Plaza, as well as the decline in the price of Plaza's stock in the recent period, impairs the Company's ability to comply with its analysis of sources and uses according to the planned time schedule.
According to the repayment schedule of the Company's Series A and Series B debentures, on
February 20, 2013 the Company is required to pay the holders of the debentures principal and interest in the aggregate amount of approximately
NIS 82 million (the "Upcoming Payments").
In light of the above, on
February 3, 2013 the trustees informed the Company that in meetings of holders of the Series E and 1 debentures it was agreed to authorize them to take legal action against the Company to prevent the making of the Upcoming Payments, and in connection therewith in a meeting that was held between the Company and the trustees of the debentures and the joint representatives of the Series E, F, F and 1 debentures (the "Joint Representatives") the Company was requested by the Joint Representatives to refrain from making the Upcoming Payments.
In light of these matters and the expected Upcoming Payments, the board of directors of the Company decided to authorize the management of the Company to commence accelerated negotiations with the trustees and representatives of all the debenture holders, in an attempt to formulate an agreement with all the debenture holders that will enable the Company to fulfill all its obligations.