Israel’s Internet Gold’s debenture holders reject Searchlight offer

By Caroline Salls

Pittsburgh, March 12 – Internet Gold – Golden Lines Ltd. reported in a Tuesday release that its debenture holders rejected a company request that would have allowed it to enter into an agreement in accordance with a revised offer from Searchlight.

The debenture holders did vote to instruct the debenture trustee to notify the company that the debenture holders will not object to granting Searchlight exclusivity and negotiating with it on the offer and to issue an instruction to approach the special managers of Eurocom Communications Ltd. with a request to inject at least NIS 75 million into Internet Gold.

In the absence of the requested capital injection, the debenture holders approved the company’s request to advance a creditors credit arrangement proposal.

As a result of the vote, Internet Gold said it intends to approach Searchlight with an offer to conduct exclusive negotiations on the sale of shares of BCom, and at the same time, to examine possibilities for formulating a debt settlement proposal, subject to the possibility of receiving an undertaking from the controlling shareholders to inject capital.

In November, Internet Gold announced that controlling shareholder Eurocom received a written demand from its banks to repay a substantial amount of debt. A substantial portion of Eurocom’s holdings in the company is pledged to the banks.

Internet Gold is a telephone and internet provider based in Ramat Gan, Israel.

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