Israel's Ampal-American's A, B and C debenture holders form committees

By Caroline Salls

Pittsburgh, Jan. 18 - Ampal-American Israel Corp. said two separate debenture holders' committees have been formed, according to a company news release.

One committee will represent the holders of Ampal American's series A and series C debentures, and the other will represent the holders of its series B debentures.

The debentures are listed on the Tel Aviv Stock Exchange.

The committees were appointed following a Jan. 1 meeting of debenture holders.

As previously reported, Ampal-American asked the trustees of its series A, series B and series C debentures to convene the Jan. 1 meeting to consider the postponement of principal payments on the debentures for 24 months.

Ampal said it wanted to postpone the principal payments because of recent political and security developments in Egypt and because of repeated interruptions of the gas supply to East Mediterranean Gas Co., in which Ampal has a 12.5% interest.

Ampal is not seeking any reduction of the outstanding principal of the debentures and will continue to pay interest under the original payment schedule, according to court documents.

The company said the postponement would give it time to enhance the value of its holding in its wholly owned Israeli subsidiary, Gadot Chemical Tankers and Terminals, and other holdings.

In addition, the postponement would allow Ampal and East Mediterranean Gas to work at reestablishing a steady and continuous gas supply to East Mediterranean Gas or, if their efforts are unsuccessful, to pursue legal remedies against the Egyptian gas supplier and the Government of Egypt with other international shareholders of East Mediterranean Gas from the United States, Germany, Canada and Thailand.

Ampal is a Tel Aviv-based holding company.

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