Application for a claim of 86 m against Delek – the capital market

Two of the shareholders of

Fuel group
-3.06%

Base:10,470

opening:10,410

Tall:10,420

low:9,992

change:20,642,620

Page Quote News Graphs Company Profile Recommendations


More articles on the subject:




Filed an application for approval of a derivative claim in the amount of NIS 86 million against the company. According to the application, which was filed against the controlling shareholder Yitzhak Tshuva, the company’s board of directors and its officers, Delek Group’s self-acquisition plan was prohibited and did not meet the companies law tests, and may make it difficult for the company to meet its obligations.

The applicants are Yehuda Shenhav and Yitzhak Weinhaus, as holders of holdings in the Delek Group, represented by attorneys Alon Perens and David Forer. The amount that the two demand from the company is the same as the volume of self-purchases made by the Delek Group.

This is a step approved by the company’s board of directors in October 2019, when the self-purchase plan was approved for a one-year period. By law, the company must ensure that it meets the profit and solvency tests at each stage of self-purchase. However, according to the applicants, Delek Group did not pass the solvency test. When making the self-purchase and in dividend distribution tests, which self-purchase is identical to in economic terms.

“The self-acquisitions were carried out in the midst of the corona crisis and the energy crisis, which brought the company to an unprecedented low,” the request said, while “investing huge sums from the company’s empty coffers.” In the financial statements of the company, which is based on financial data of the company in the period prior to the self-purchase. “The applicants estimate that the purchase was made in order to” artificially maintain the value of the collateral provided by Yitzhak Tshuva to the banks. ”

Thus, they write that if this is indeed the reason for the move, it “constitutes an exceptional transaction of a public company with another person in which the controlling shareholder has a personal interest. Such a transaction must be approved by the Audit Committee, Board of Directors and the General Assembly.”

It was further argued that “in light of the company’s financial entanglement, which led it to make debt settlements, the company suffered actual damage due to the lack of the deductible amount from its fund. Very large “.

It should be noted that Delek has secured the repayment of its liabilities for 2021 in a series of steps it has taken, including the accelerated realization of assets and the securitization of super royalties from the Whale Reservoir. In April, it will have to raise NIS 50 million in accordance with the arrangement reached with the bondholders. About a week ago, it raised NIS 40 million, also as part of the outline with the holders, in an issue that recorded demand of NIS 69 million. In 2022, Delek Group will have to repay 1.97 NIS 1 billion and if the plans mentioned in the projected cash flow that it published for 2021 go up well, the company will be left with a sum of NIS 2.25 billion that will help it meet its commitment.

Delek Group reported: “As of this moment, no such request has been received at the company’s offices. If a request arrives, we will be able to respond.”