Israel's two big banks, Hapoalim and Leumi, have acceded to the request by
(Nasdaq:GILTF) to extend its credit term from four to eight years,
Bank Hapoalim and Bank Leumi had lent Gilat of $36 million. Gilat hoped to repay by raising money on Wall Street. That plan was crushed by the stock market crash.
Gilat also borrowed $25 million from the
group, which is controlled by the Disney family, in exchange for convertible bonds. The bonds are convertible at a rate of $23 per share, while Gilat now sells for $1.5 per share.