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Dan bus co-operative borrows $520 million from Bank Hapoalim

To redeem members' shares and make retirement payments as part of restructuring effort

The Dan Co-operative Society for Public Transport told Tel Aviv Magistrates Court it will suffer financial damage if its transition from a co-operative to a corporation is delayed. Workers and the Histadrut labor federation have petitioned the court to halt the restructuring process.

Yedioth Ahronoth reports that the Dan Co-operative expressed concern in its response to the lawsuit that delays will further worsen a cash flow problem created by a drop of NIS 30-40 million in annual revenues.

In its response, Dan also mentioned it had recently taken a NIS 520 million loan from Bank Hapoalim to redeem members shares and to make them shareholders in the company, and for retirement payments mandated by the new structure of the company.

According to Dan if the structural reform does not take place, it will be forced to repay the loan within a few months, and will also have to pay a "fine" of several hundred thousands of shekels.

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