The Tel Aviv-listed Green venture capital fund has reached a debt arrangement with Bank Leumi, to reschedule $76 million in loans taken out to invest in startups.
Green, a fund of funds controlled by businessman Yitzhak Tshuva, borrowed the money to fuel an aggressive acquisition campaign during 1999 and 2000. Tshuva, who also controls the powerful Delek group of energy companies, personally guaranteed the loans.
Leumi agreed to extend the loans until April 25, 2007. But if Green fails to comply with its collateral undertakings, Leumi may bring the redemption date forward to April 25, 2002.
Leumi holds 4.73% of Green's equity. Its stock is worth only NIS 1.1 million on the Tel Aviv Stock Exchange these days. Mutuals under Leumi's control also own similarly-sized chunks of Green equity.
As a key shareholder, the bank has a voting-cooperation agreement with Tshuva. Therefore, its acquiescence to reschedule the debt is considered an insider deal.
Two months ago Green redeemed NIS 66 million worth of notes.
The company's holdings include 50% of the Mofet venture capital fund, which today reported losing NIS 3.5 million for the third quarter.
Green also holds 29% of Marathon, another venture capital fund, 15% of the Sadot R&D investment company, 25% of the Aura investment company and about 25% of the Investech fund.
As of the end of second quarter, Green's book value stood at NIS 62 million. So far this year it has lost NIS 46 million.