The seven banks that loaned Gad Zeevi $720 million for his purchase of a 20% stake in Bezeq, may ask the court to decide on refinancing the loan. This could resolve the disagreement between the banks on the question of refinancing, after Zeevi failed to make payments on time.

Bank Hapoalim, Bank Leumi and the First International Bank of Israel want to extend the repayment period on the $720 million principal by another two years, if Zeevi pays the $90 million interest, $45 million in cash. The big banks are also requesting a 15-20% share of the profits, if there are any, in the event Zeevi manages to sell the 20% stake in that period. For the time being, the privatization of Bezeq does not seem to stir much excitement among potential investors.

The smaller banks of the seven, Mizrahi Bank, Union Bank of Israel and Mercantile Discount Bank object to the refinancing, and prefer a joint holding of the Bezeq shares.

In spite of their negotiations, the banks have not yet reached an understanding on the issue. A source in one of the banks believes the smaller banks are taking a hard line on the matter to force the big banks to buy their debt.

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In such a case, the big banks would acquire the debt at a lesser value, and the small banks would lose the interest payments and any future profits on the shares. Buying the debt would win the big banks a desirable arrangement with Zeevi, but at the moment it appears they do not intend to do so.

The bank consortium two months ago seized the collateral on Zeevi's loans for the acquisition.