Under a compromise with Eurocom’s creditor banks, Internet Gold will not sell its stake in Bezeq parent company B Communications directly to the Neuman brothers
A day before the court hearing on freezing the deal for selling control of Bezeq to brothers Tzahi and Chen Neuman, a compromise appears to have been reached between Internet Gold Golden Lines Ltd. (Nasdaq: IGLD; TASE:IGLD) and the creditor banks of its parent company Eurocom. Under the compromise, Internet Gold will hold an orderly auction of its controlling stake in Bezeq. It will hire the services of an additional investment bank, besides the one with which it is currently working. The sale process will be transparent to the special managers of Eurocom
The compromise agreement also stipulates that representatives of Eurocom’s creditor banks will receive four seats on Internet Gold’s board of directors, rather than five as they at first demanded. The special managers undertook not to conduct any process for the sale of Internet God for the next three months
Internet Gold wanted to sell its holding in B Communications Ltd. (Nasdaq:BCOM; TASE: BCOM), Bezeq’s immediate parent company, to the Neuman brothers at a valuation of NIS 1 billion. Eurocom’s special managers (counsel to the company’s creditor banks) sought an injunction against the deal, and investment house Altshuler Shaham, the second largest shareholder in Internet Gold, joined the petition