Bondholders of Bull Trading Move Closer to Taking Control as Talks with Controlling Owner Falter

In a decisive turn of events, negotiations between the bondholders of the non-bank credit company, Bull Trading, and its controlling owner, Ronen Bachor (72%), have hit a roadblock. This impasse has set the stage for bondholders to potentially seize control of the company.

The backdrop of this development is the recent turmoil in the non-bank credit industry, with two other companies in the same sector, Backing and Yount Credit, succumbing to insurmountable debts amounting to hundreds of millions of shekels. Control of these companies was transferred to their respective creditors.

On the horizon, after the conclusion of Rosh Hashanah, is a critical meeting scheduled for Monday, where bondholders of Bull Trading's A (+0.1% 60.06%) and B bonds will gather to deliberate on a unilateral debt settlement proposal. Notably, the bondholders did not endorse Bekur's plea to extend Bull's debt repayment period in exchange for an increased interest rate and fortified collateral.

The financial stakes are significant, with Bull Trading's debt to bondholders A totaling NIS 90.6 million and to bondholders B amounting to NIS 45.4 million. In total, the company grapples with a debt burden of approximately NIS 136 million.

In a surprising twist, Bull Trading's CEO, Adwa Asur, is expected to retain their position despite the unfolding financial drama. Meanwhile, Bachor, who holds the position of chairman of the board, might assume a consultancy role in exchange for options or shares in Bull Trading.

As the situation continues to evolve, the future ownership and direction of Bull Trading hang in the balance, with bondholders poised to take the reins if a mutually agreeable settlement cannot be reached.

Stay tuned for further updates as this financial saga unfolds.