Israeli actual property growth and development firm Hanan Mor Group (TASE: HNMR) has filed within the Tel Aviv District Court docket for a stay-of-proceedings. The request reveals that the corporate has run up heavy money owed of NIS 2.7 billion.
The corporate says that over the previous yr, and particularly in latest months, exterior circumstances, international and home, have led to an ideal storm of stagnation in the actual property market, a toughening of credit score and financing phrases, political instability, a rising and deepening social rift, and conflict.
To this uncommon and distinctive set of circumstances,” writes Hanan Mor, was added a heavy monetary burden, within the type of quarterly curiosity totalling NIS 25 million for the collectors of the Sde Dov challenge consortium, who offered the corporate with financing for the acquisition of distinctive, prestigious and uncommon land. The request was filed by Advs. Zuriel Lavie and Yossi Mandelbaum of the Lipa Meir regulation agency.
Hanan Mor is requesting a 90-day stay-of-proceedings and prices that Financial institution Leumi has ‘taken benefit’ of its scenario. “Within the second quarter of 2023,” the request says, Leumi took benefit of the truth that the loans it offered for the acquisition of land in Ramat Gan and Haifa reached their formal finish and required reimbursement..,.. The place of Leumi was opposite to the expectation of Mor holdings, which believed that the loans could be prolonged till the date of entry into the challenge, as is customary.
“Different monetary collectors of Mor Holdings, who financed the acquisition of different heaps (together with these whose debt to them exceeds the debt to Leumi and people whose debt is decrease than the debt to Leumi), continued to increase the loans for the land purchases, in accordance with the corporate’s follow and assessments, and even supported it and got here in the direction of it when it comes to its wants.”
Hanan Mor Group’s share value has fallen 90% over the previous yr, reflecting a market cap of simply NIS 60 million.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on November 20, 2023.
© Copyright of Globes Writer Itonut (1983) Ltd., 2023.