Approved: Exphon's debt settlement for creditors - 2/3 will be sold to Clearmark

Exphon's debt settlement for creditors: Judge Irit Weinberg-Notowitz of the Lod District Court approved the purchase of Marathon 018 (Exphon's cellular activity) by the Clearmark Foundation and businessman Yariv Lerner. About a year ago, Expon stopped paying Cellcom for the use of the two's cellular network, and accumulated a huge debt in front of it, until it finally reached insolvency.
Clearmark and Lerner will acquire control of the cellular company from owner Hezi Bezalel, who will continue to own a third of the company's operations. According to the debt arrangement that has been formulated, the new controlling shareholders will inject NIS 100 million into the company, which will be used to repay the debt to creditors in the amount of NIS 65 million, and for the benefit of the company's continued activity as a network operator.
The deal itself still requires the approval of the Ministry of Communications and the Competition Authority. The Ministry of Communications has previously expressed its position that Clearmark and Lerner's offer is best for the cellular market, as the foundation and the businessman have presented to the court a cellular network sharing agreement.
Advocate Amit Lederman, Expon's Arrangement Manager, recommended to the creditors and the court that Clearmark and Lerner be the appropriate purchasers, because as part of their bid to acquire Marathon 018, the company would remain a regular mobile operator (MNO). Virtual Operator Marathon 018 (MVNO), which means that Exphon will continue to invest in the development of cellular infrastructure with Cellcom.
According to sources involved in the details, the marathon is expected to continue as usual under its current CEO, Assaf Ofer, and the rest of the company's management. The cellular company employs 110 people and its cellular operations include 350,000 customers. To operate 5th generation frequencies using Exphon, which is good news for the company's customers, after the development of the new cellular network slowed down in the wake of the conflict.
The approval of the deal means that Weinberg-Notowitz has rejected the offer of Wadeley Mobile, which belongs to the Canadian Reichman family - until recently the leading competitor in the acquisition of Exphon. Four months ago, Wydley Mobile signed an agreement with Bezalel, in which he agreed to sell the company for NIS 330 million.