Banks Discount, Continental demand immediate repayment of NIS 68m from Peled-Givony group

Group's Hayl Holdings trying to sell real estate to return part of debt
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Banks Discount and Continental today joined Hapoalim in trying to immediately recall loans granted to the Peled-Givony business group.

Peled-Givony company Hayl Holdings owes Bank Discount NIS 10.5 million. Discount is demanding the money from Hayl's fully-owned subsidiary Nof Hacarmel Hotel, Hayl advised the Tel Aviv Stock Exchange today.

If Nof Hacarmel fails to comply, or if Hayl fails to reach an arrangement with the bank, within 10 days, Discount said it will take legal remedies.

Three days after the blow from Discount landed, Bank Continental chimed in. Continental demands that Hayl immediately return NIS 57 million.

Hayl had borrowed the money to buy shares in Feuchtwanger Investments. Unless Hayl returns the money by July 25, Continental threatened to start collection steps.

Continental has a lien on 36% of Feuchtwanger Investment's shares. Meanwhile trade in Feuchtwanger Investment shares on the Tel Aviv Stock Exchange has been suspended, as the company failed to deliver its financial statements. Continental therefore would not be able to sell the Feuchtwanger shares to a third party.

Continental also has rights to an option Hayl received from Mashav, under which Hayl could force Mashav to buy the Feuchtwanger Investment shares from it for NIS 50 million.

Hayl commented today that lacking liquid sources, the company is trying to sell real estate assets to pay its debts. Hayl's management estimates that the sale could cover only part of its debts to Discount and Continental.

Hayl added that its board will be convening urgently to discuss the latest developments.