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Sources inform ''Globes'' that Polar Investments Ltd. (TASE: PLR), controlled by chairman Ziel Feldman, is seeking a NIS 140 million debt settlement.
Feldman, through FD Holdings Group, acquired the 41% controlling interest in Polar Investments from Shrem Fudim Group Ltd. (TASE: SFG) for NIS 208 million, reflecting a company value of over NIS 500 million, in 2006. Five years later, the company has a market cap of NIS 80 million, and the TASE suspended trading its in share in May. Polar's second largest shareholder is Destiny Global Ltd., owned by Avi Roichman and Aryej Ovadia, with a 33% stake.
Investment institutions told "Globes" that were willing to cut a deal, but wondered how Feldman, who is portrayed as a US real estate tycoon, needed to seek one. One investor said, "He may be a tycoon in the US, but in Israel, he wants us to pay his bus fare."
The sources said that Polar Investments CEO Uri Shani is in preliminary talks to reschedule the company's debt in exchange for higher collateral and interest rates on its bonds. The company has NIS 140 million in bonds, which carry junk-bond yield of 32%.
The principal on the bonds, issued in 2007, is due in annual payments in January 2011-15, and the interest payments are paid twice a year. A NIS 40 million interest and principle payment is due in six weeks. The company missed the NIS 20 million interest payment in July 2010, claiming suspicions related to the Holyland project in Jerusalem and Hazera Genetics Ltd., a developer of hybrid seeds.
One of Polar's largest creditors is the Origo debt recycling company, which has invested NIS 90 million in the company since March 2010.
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