Israel – Boymelgreen CEO: ‘We lack Resources To Repay Debts’.

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    Shaya BoymelgreenIsrael – The company has not yet published its financial report, but I hope that we’ll do so by the end of today,” Boymelgreen Capital Ltd. CEO Gil Tobul told bondholders today. US real estate developer Shaya Boymelgreen controls the company.

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    Tobul added, “The company had a plan for the sale of assets in order to meet its commitments. We’re dealing with a crisis, which no here has ever experienced, and the sales failed. The offers we received for not solve the problems.”

    Tobul noted that subsidiary Azorim Investment, Development and Construction Ltd. is the main source of Boymelgreen’s cash flow. “Our most important asset is Azorim, and we believe that, with the right management, it can emerge from it difficulties, and in the long term also serve the commitments and interests of everyone. We all have the same interest.”

    Aside from Boymelgreen’s bonds, Mizrahi Tefahot Bank is the company’s largest creditor. “The loan from Mizrahi Bank is secured. The debt exceeds NIS 600 million, and the main asset on which it has a lien is Azorim. The bank’s conduct is responsible and measured.”

    At the meeting, Tobul was asked, “What about the next bond payment?”

    Tobul repliedm “It is necessary to convene as fast as possible, but the company currently lacks the resources to pay. The solution will be wide-ranging. The current situation is under control, and it’s necessary to act responsibly and sagaciously. We’ll talk with the bondholders’ representatives.

    “The practical effect of all the offers we received would not have solved any problem. If we were to sell, there would be no change. On the contrary, we’d be left with fewer means to cope. In the current market climate, we can’t get a price that would serve our debts, and it’s necessary to wait for this before we can sell.”

    Investors asked, “Why not distribute Lagna Holdings Ltd. shares as a dividend in kind?”

    Tubol replied, “I don’t know how much that would help, but it is being considered.”

    Tubol added, “I think that, in contrast to other cases, the situation at Boymelgreen Capital is straightforward. It has three assets and prices are at an unprecedented nadir. We took out loans against these assets, and in the current market conditions, we cannot get a price that allows us to repay our debt.”

    Megamot College director Naftali Mendelovich attended the meeting as the representative of 300 bondholders. He said, “The company is effectively bankrupt. They don’t have a shekel on hand. To the best of my knowledge, Shaya Boymelgreen personally has no money for the company. We have Azorim and its subsidiaries.”

    Boymelgreen Capital owns 64% of Azorim, Azorim Tourism Ltd., and 50% of the Assuta Medical Centers compound in the Tel Aviv. Azorim owns 74% of Lagna. Azorim develops projects in Israel, the US, and India (through Azorim International Holdings Ltd.) Lagna, which controls Engel Construction and Development Ltd. and its subsidiaries, develops projects in Israel, Eastern Europe, and the US.


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    23 Comments
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    Anonymous
    Anonymous
    14 years ago

    What’s with his bank here ? Liberty Pointe Bank?

    Anonymous
    Anonymous
    14 years ago

    I think park ave bank is his not liberty but I’m not 100% sure

    AuthenticSatmar
    AuthenticSatmar
    14 years ago

    As the crisis unfolds, there is a trend beginning to emerge. The Rich have all gotten rich from others people money, siphoned off billions for themselves, and then left the investors and bondholders dry. And the saddest part is that its all legal and the public will be left with the bill.

    Anonymous
    Anonymous
    14 years ago

    Liberty Pointe is his. Sorry to say as I do wish Bgreen well but anyone who has gelt there should make sure they are not over the federal insurance limits.

    Anonymous
    Anonymous
    14 years ago

    accounts are covered now up to $500,000,so i do not think there are many people who need to worry.

    Anonymous
    Anonymous
    14 years ago

    Why doesn’t he get in line for a stimiulus bailout from Obama ?
    Maybe the numbers are not large enough. It needs to be BILLIONS on just a measly
    couple of hundred million. But he’s close – just make a few more bad deals/loans and he’ll be over the top and qualify for a bailout.

    Anonymous
    Anonymous
    14 years ago

    It is just a miscalculation

    ZIGMOND VON BRACH
    ZIGMOND VON BRACH
    14 years ago

    Boymelgreens problems in Isarael has nothing to do with his businesses in th USA. Totally seperate and with diferent partners. It looks like his holdings in USA are safe. He made a very good splitup with Lev Leviev in the USA when assets were high. He made out like very well after the split. Boymelgreen got cash and Leviev got real estate, which is now chooking him. Israel is a different story because the banks and the government dont extend a helping hand when youre in trouble, like in the USA.