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Bank Leumi has petitioned the Tel Aviv District Court to foreclose its liens on assets of Olimpia Real Estate Holdings Ltd. and appoint a receiver for the insolvent company. The company owes the bank NIS 15 million; it also owes its bondholders NIS 250 million.
Olimpia is a victim of the Eastern European real estate bubble. It easily raised hundreds of millions of shekels from investment institutions and reached a market cap of NIS 580 million at its peak. Today, its market cap is NIS 8 million and its bonds bear junk bond yields. The Tel Aviv Stock Exchange suspended trading in the share this afternoon, after it rose 0.6% to NIS 0.32.
Olimpia has consented to Bank Leumi's petition, saying, "Regrettably, the bondholders' representative showed no serious interest in any of the proposals we offered to restructure the company's debt, and never presented any counter-proposal of its own."
Olimpia's auditors appended a going concern warning to its financial reports, after the company accumulated over NIS 100 million in losses over the past two and a half years.
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