Argentinian investor Eduardo Elsztain withdrew his planned backing of IDB Holding Corporation, a member of Nochi Dankner's portfolio of companies. Danker announced the backing out to the financially distressed company's bondholders today.
The company said that Eduardo Elsztain will hand out a new proposal to the bondholders for a debt arrangement within the coming days. Also, Danker appeased the bondholders with news that potential investors from Israel and other countries could make investments worth hundreds of millions of shekels in IDB Holding. The incoming investment will be deposited in an escrow account next week, said Dankner.
However, the identities of these potential investors have yet to be named.
The Argentinian investor previously backed Ganden Holdings, the parent company of IDB. Elsztain was supposed to invest a total of NIS700 million in IDB.
"He has had it with the Israeli economy. But we believe that by Sunday, everything will be clearer and Dankner will present his alternative to the investors," said a source close to IDB regarding the reason of Elsztain's withdrawal.
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