Israeli Network Delays Loan Repayment

Israel's Partner Communications, which trades under the Orange brand name (but has no financial links to Orange) has announced that the date for its repayment of approximately US$ 96 million to Bank Hapoalim under its US$750 million credit facility has been delayed by one month to the end of April, with the consent of the Bank of Israel.

Under its credit facility, Partner is required to repay Bank Hapoalim on an accelerated repayment schedule, as a result of Bank of Israel rules restricting loans to related entities. Certain controlling persons of Partner's principal shareholders are also, indirectly, part of the controlling group of shareholders of Bank Hapoalim, one of the banks participating in the credit facility. Partner continues to work on a solution that would allow Bank Hapoalim to participate in its credit facility on the same terms as the other lending banks or that would ensure that funds are available to repay all of the amounts due to Bank Hapoalim on the scheduled repayment dates."

Posted to the site on 26th March 2002