Israeli court ruled against developer seeking restructuring of bond debt

Urbancorp is one of just 16 North American real estate companies to borrow there

New York /
Apr.April 26, 2016 09:50 AM

A judge in Tel Aviv ruled against a request by Toronto-based Urbancorp to restructure the debt it raised on the Israeli bond market.

The court appointed an officer with the power to dig into Urbancorp’s books and, in necessary, seize its assets, a development that may strike fear into the hearts of Israeli bond buyers and foreign property developers raising funds in Israel.

UrbanCorp raised $180 million shekels, about $48 million, just a few months ago, with an 8.65 percent coupon. Prices on those bonds have since halved. The company’s israel directors and advisors have bolted, and trading in the securities has halted, Bloomberg reported.

The firm is one of just 16 North American property firms borrowing on the Israeli market, according to Bloomberg. New York players such as Gary Barnett’s Extell Development, David Lichtenstein’s Lightstone Group and Joe Moinian’s Moinian Group and others have all sought funding there.

“Urbancorp is an exceptional case and doesn’t represent the norm but as a result we are likely to see Israeli investors be more skeptical about future debt offerings by foreign real estate companies,” a Tel Aviv-based fund manager told Bloomberg. [Bloomberg]Ariel Stulberg


Related Articles

arrow_forward_ios
Denizen Bushwick at 123 Melrose Street in Brooklyn (Google Maps; iStock)

All Year misses Israeli bond payment, sending values plunging

All Year misses Israeli bond payment, sending values plunging
Starwood's Barry Sternlicht and Pacific Retail's Steve Plenge with Parkway Plaza mall in San Diego and the Plaza West Covina mall in Los Angeles (Getty, Starwood, Pacific Retail)

Last bidder standing has big plans for Starwood’s troubled mall portfolio. But first, creditors must sign off

Last bidder standing has big plans for Starwood’s troubled mall portfolio. But first, creditors must sign off
Tel Aviv Stock Exchange bull (Wikimedia Commons)

NYC developers face downgrades on Israeli bond market

NYC developers face downgrades on Israeli bond market
From left: 871 Grand Street, 392 St. Marks Avenue, 607 Franklin Avenue and 600 Park Place in Brooklyn (Google Maps, iStock)

David Werner misses deposit deadline on $300M deal with All Year

David Werner misses deposit deadline on $300M deal with All Year
Silverstein Properties chairman Larry Silverstein (Getty)

Silverstein Properties raises $30M on Israeli bond market

Silverstein Properties raises $30M on Israeli bond market
Related chairman Stephen Ross and Related Companies Portfolio CEO Richard O’Toole withBronx Terminal Market and Time Warner Center (Getty, Google Maps, Wikipedia)

Related lays out $200M debt settlement plan for Tel Aviv bondholders

Related lays out $200M debt settlement plan for Tel Aviv bondholders
Clockwise from top left: 871 Grand Street, 392 St. Marks Avenue, 607 Franklin Avenue and 600 Park Place in Brooklyn (Credit: Google Maps; iStock)

All Year and David Werner renegotiate deal for $300M Brooklyn portfolio sale

All Year and David Werner renegotiate deal for $300M Brooklyn portfolio sale
Alex Sapir and the Tel Aviv Stock Exchange (Sapir by Clint Spaulding/Patrick McMullan via Getty Images, Jack Guez/AFP)

Sapir Corp goes private as shareholders approve buyout

Sapir Corp goes private as shareholders approve buyout
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...