Businessman Gad Zeevi's debt grows as dollar continues to strengthen

Businessman Gad Zeevi's debt to the banks is deepening as the dollar continues to strengthen against the shekel.

Zeevi took bank loans to finance his acquisition of a 20% stake in state-owned phone company Bezeq (TASE: BEZQ ) from Cable & Wireless (LSE:CW).

Bank entities said that the securities that Zeevi gave the banks are currently worth some NIS 150 million less than his remaining debt, Yedioth Ahronoth reports.

The outstanding debt is estimated at about $610 million. Zeevi's securities are today worth some $580 million, based Bezeq's market cap. The gap could widen as the stock exchange is not expected to recover soon, and the dollar is expected to continue gaining ground.

Meanwhile the court hearing on the Zeevi group debt to Union Bank of Israel has suffered another delay. The hearing was due to take place Tuesday at the Tel Aviv District Court but was postponed because Judge Varda Alshech was taken ill.

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