Alon Blue Square arrangement approved, pending approval of amendments

By Caroline Salls

Pittsburgh, Aug. 10 – Alon Blue Square Israel Ltd. obtained approval of its debt reorganization and arrangement from the District Court in Lod, Israel, subject to the receipt of approval of a proposed amendment by holders of the company’s series C debentures and the controlling shareholder’s series A debentures, according to a company news release.

Under the proposed amendments, the total consideration payable to minority shareholders by the purchaser would be NIS 6.88 million, minus legal fees for representatives of the minority shareholders in court who submitted a class action on behalf of the shareholders.

The total consideration payable to Alon’s controlling shareholder by the purchaser would be reduced to NIS 113.38 million from NIS 115 million.

In addition, the amount payable to specified financial creditors would be reduced by NIS 1.63 million. The company said this reduction would be carried out by reducing the period during which interest is to accrue.

The company said the trustees for the series A and series C debentures will hold meetings on Aug. 11 on approval of the changes. Results of the meetings will be submitted to the court no later than Monday.

According to the release, the court also approved a settlement between Alon and the trustees of its Mega Retail subsidiary.

Based in Rosh Ha’Ayin, Israel, Alon Blue Square owns and operates supermarkets and specialty stores.

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