Internet Gold says proposed Bezeq deal won't enable debt payback

B Communications

23/06/2019 14:44

JERUSALEM, June 23 (Reuters) - 
    * Internet Gold Golden Lines  IGLD.TA  said on Sunday that
proceeds of the possible sale of its unit that owns a
controlling stake in Bezeq Israel Telecom  BEZQ.TA  would not be
sufficient to enable it to pay its debts.
    * Internet Gold's principal asset is a 51.95% stake in B
Communications  BCOM.TA , whose sole asset it a 26.34%
controlling share in Bezeq, Israel's largest telecom group.
    * U.S. private investment firm Searchlight Capital has been
negotiating the purchase of BCom.  urn:newsml:reuters.com:*:nL8N23R4AT
    * "The proceeds to be received by the company will not be
sufficient to enable it to pay its debts, and the company will
initiate a creditors’ arrangement which will be submitted to the
applicable Israeli court," Internet Gold said in a regulatory
filing.
    * "The company anticipates that pursuant to such
arrangement, the
existing shares of the company will be nullified," it clarified
after its trades were trading up 30% in Tel Aviv.


 (Reporting by Ari Rabinovitch; Editing by Tova Cohen)
 ((ari.rabinovitch@thomsonreuters.com;  +972-2-632-2202; Reuters
Messaging: ari.rabinovitch@thomsonreuters.com@reuters.net))