Discount Investment Corporation (TASE: DISI ), which owns 48% in debt-burdened cable firm Tevel, today informed trustee and special manager Zvi Yochman that it would inject up to $10 million into the company.
Discount Investments had made a previous decision to inject up to $5 million into Tevel during the stay of liquidation proceedings.
The allocated capital would help Tevel close the expected budget deficit when the stay of liquidation ends on June 27. In a report Yochman filed with Tel Aviv District Court, he said the budget deficit could come to $10 million. The court today told Yochman that unless shareholders transfer money to Tevel, there's no point in the stay of proceedings.
The court said that unless shareholders inject sufficient money to keep the company balanced during teh stay, so that creditors won't be hurt by the grace period, the stay of liquidation could well be cancelled.
In view of the court decision, Yochman has to file a report within seven days, presenting the results of his talks with Discount Investments and United Pan-Europe Communications (Nasdaq:UPCOY), which owns 46.5% in Tevel.