Israir sale trustee expresses concerns over Fortissimo bid

Israeli leisure carrier Israir’s trustee has expressed several concerns to the latest bidder for the airline, investment fund Fortissimo Capital, over its acquisition proposal. Fortissimo emerged as a bidder on 24 November but the airline’s trustee has sought an urgent meeting with the company to discuss problems with the bid. “It appears that the proposal raises a considerable number of difficulties,” the trustee states in a 25 November communication, pointing out its non-binding nature and the lack of a bank guarantee. The communication adds that the offer is subject to a number of conditions including performing due diligence and granting a 45-day exclusivity period – with a possible 14-day extension. “Wording of the offer indicates that it may be subject to additional conditions that have not been specified at all,” it states. There are also “ambiguities” relating to the “vague obligation” to inject capital into Israir, and the waiving of its debt to parent IDB, subject to tax matters, and – given that Fortissimo plans to take 90% of the company – the trustee has “many question marks” regarding the outstanding 10% share.<br/>