UPDATED, 5:53 p.m., Jan. 7: Brookland Capital CEO Boaz Gilad resigned from an affiliated holding company on Monday in the face of pressure from bondholders.
Brookland stalled trading on its Tel Aviv bonds after announcing in November that liquidity issues would prevent it from meeting its debt obligations, according to Commercial Observer. Afterward, the company started negotiations with bondholders over $40 million that it still owes.
The bondholders pressured Gilad to resign from the British Virgin Islands company Brookland Upreal Ltd. last week and give leadership of the company to a special administrator.
Gilad opposed the move, but the firm’s three other directors approved it. New Jersey landlord Ronel Ben-Dov was appointed to the position but still needs to be confirmed.
In documents on the Tel Aviv Stock Exchange, Gilad said he resigned because of aggressive demands from bondholders and said Ben-Dov was appointed without his consent in a manner that would hurt the company and him.
Gilad said in an email to The Real Deal that his Brooklyn-based development firm Brookland Capital was still “alive and kicking” and stressed that he had only resigned from the holding company.
Brookland is one of the most prolific developers in Brooklyn, and Gilad still owns many of its properties and guarantees many of its loans. [CO] – Eddie Small
Editor’s note: This story was updated to reflect that Gilad resigned from the BVI-based holding company, not the American development firm.