TEL AVIV Dec 9 Creditors in debt-ridden Israeli
holding company IDB Holding Corp approved a rescue
plan submitted by Argentine businessman Eduardo Elsztain and his
Israeli partner, rejecting a rival proposal from controlling
shareholder Nochi Dankner.
Elsztain and his partner, Israeli entrepreneur Motti
Ben-Moshe, received over 75 percent of the votes of bondholders
and bank creditors, the minimum needed for it to be approved,
the company said on Monday.
As a result of the vote, barring court intervention, Dankner
will lose control of IDB.
Many of the companies IDB owns have been hit by slowing
economic growth and increased competition. IDB Holding owes
bondholders 2 billion shekels ($571 million) and its subsidiary
IDB Development owes a further 5.8 billion shekels.
IDB controls Cellcom, Israel's biggest mobile phone
operator, and leading supermarket chain Super-Sol.
Dankner, who bought IDB in 2003, struggled to retain control
as the company's debts mounted. He originally brought in
Elsztain to help fund a bailout of the group but Elsztain broke
the alliance and made his own offer. Dankner then partnered with
Ukrainian businessman Alexander Granovsky, who offered to take
over IDB through his mobile technology firm Emblaze.
Both offers from Dankner's group and Elsztain involved a mix
of cash injections and swapping debt for equity.
Dankner said there is a still a legal process ahead as he
has the right to take action in court.