The company does not need money now and the liability is mostly finished. I doubt these are
shorts, but if they are things will be very interesting. I would not want to be short with 24 M shares
on a 7M shares company. I doubt it is possible. probably mostly traders in & out.
Buying back debt without issuing new debt means the company is reducing debt.
That is a good thing. I do not know how long the restructuring will take in order to float value.
I do not think that the management knows as well. they do what they can.
Indeed, its been cooking for a while now. they have about 140M NIS at the company level and if they close
on the Chennai sale, that would be anothe 45M (disregarding any repayment of the Indian partner
advancement from 2008).
If they could just find a way to get rid of the Tiberius land, that would be great.
Another interesting thing: last quarter they got a piece of land in Bucharest back from Plaza Centers. the
name of it is Cina Plaza and it is a small piece of land with a building with a restaurant called Cina. it is
almost attached to the Hilton Hotel and very close to the Radisson complex that belongs to Elbit.
Years ago the plan was to build 5000 sqm of exclusive retail area. it would be nice if they could let Radisson
build it and manage it. it would add value to the complex (future growth).
Anyway, the parcel was always classified as immaterial on the Plaza books (and with no value as a
Anyway, the company is on the right track for now (and even Plaza is getting better...).
Plaza has 4 remaining active properties (in operation with a NOI). one of them was Liberec. this mall
is not doing very well and its NOI is low (due to stiff competition and some mismanagement).
One of the reasons the mall was neglected was due to the fact that the loans against it were too high
to support. my understanding was that Plaza was responsible for the mortgage, but it seems I was
wrong. cutting the debt against the property could allow Plaza to invest properly in it and develop it and
would increase the equity.
Anyway, that is good news.
Company is not on the verge of BK at all. the Park Inn by Radisson just opened in Bucharest a few
days ago. with that in place, the hotel complex should be able to generate NOI of 14M Euro.
The complex has 61M Euro debt and its value could easily exceed the book value of 140M Euro.
on top of the equity, Elbit loaned the complex 11M Euro for the buyout (98% now belongs to Elbit).
The PR you are seeing is for the two hedge funds in control, arguing how to manage plaza centers (45%
owned by Elbit). DK was expecting quick returns and York, who is the largest share holder in Elbit and
appointed the plaza manager, is not delivering so far good appreciation.
Lets see if something positive happens here. the asset values here justify a much higher price.