JERUSALEM, June 23 (Reuters) -
* Internet Gold Golden Lines said on Sunday that proceeds of the possible sale of its unit that owns a controlling stake in Bezeq Israel Telecom would not be sufficient to enable it to pay its debts.
* Internet Gold’s principal asset is a 51.95% stake in B Communications, 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.
* “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)