The legal representatives of Union Bank of Israel and Zeevi Communications Holdings group today filed a petition with the Tel Aviv District Court for a 72-hour extension to allow them to reach a settlement regarding the group's debt to the bank.

The group took loans from Israel's leading banks to finance its acquisition of 20% in phone company Bezeq from the U.K.-based telecom giant Cable and Wireless.

Union Bank filed a petition to liquidate the Zeevi group after it failed to make payments on its NIS 8.3 million debt to that particular bank.

Today the Zeevi group informed the court that on Saturday the boards of all the companies approved the restructuring plan. First International Bank of Israel CEO David Granot has not yet approved the plan.

Zeevi group said that according to the restructuring plan, FIBI is to provide loans worth some NIS 25 million for a period of six to eight months. This will allow the group to repay its debt to the bank, as well as its NIS 5.6 million debt to the Apax, Gachelet and Ampal funds.

The loan will also be used to increase the group's working capital to some NIS 3 million, in order to enable it to carry out the reorganization plan.

The group's assets are to serve as collateral.