JERUSALEM, April 27 (Reuters) – Israeli conglomerate Delek Group DLEKG.TA said on Monday it planned to raise 300 million shekels ($85.5 million) of capital in order to reach a settlement with bondholders.
In a regulatory filing in Tel Aviv, Delek did not provide further details.
Bondholders, concerned over the firm’s deteriorating financial situation, have threatened to call for Delek to repay all of the 6 billion shekels owed them if the company did not immediately inject 400 million shekels to shore up its balance sheet.
Bondholders have said this is a precondition to debt restructuring negotiations with Delek, which has shed assets to become largely an energy company.
Delek’s shares and bonds have been hit hard amid the coronavirus outbreak and drop in global oil prices. Debtholders believe the company’s cash flow will be curtailed while its net asset value has turned negative, and the firm might have difficulty meeting its obligations — including payment of 1 billion shekels owed this year.
Delek has said it could raise funds by selling off more assets and from dividends of its units.
($1 = 3.5102 shekels)
(Reporting by Steven Scheer)
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