Banks to Tevel: We won't write off debt, IDB must come up with cash

The heads of the major banks, Bank Leumi Le-Israel(TASE: LUMI ) and Bank Hapoalim(TASE: POLI ), the principal creditors of debt-burdened cable TV firm Tevel, informed Tevel and its shareholders that they don't intend to write off any of Tevel's debt.

The banks informed Tevel and its main shareholder Discount Investment Corporation (TASE: DISI ) that the banks will demand a receiver-operator for Tevel unless the IDB group, including Discount Investments, immediately announces that it is injecting money for Tevel's continued operation.

TheMarker has learned that Ehud Shapira, member of the Bank Leumi board, and head of Corporate & International Banking, met with Tevel Chairman Ami Erel and made it clear to him that the banks won't write off Tevel's debt. Shapira said that the banks expect IDB to inject money into Tevel. Apparently, Bank Leumi Chairman Eitan Raff also clarified this to the heads of the IDB group.