June 23, 2019 / 1:48 PM / 4 months ago

Internet Gold says proposed Bezeq deal won't enable debt payback

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)

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