Hungarian 4iG and Israel provide bailout for Israeli company that lost 19/20ths of its stock market capitalization

Gellért Jászai, the head of the 4ig (Copy)
Gellért Jászai. Source: PrtScr/Youtube

Hungary’s 4iG has signed a binding memorandum of understanding with Israel Aerospace Industries (IAI) on the settlement of Space-Communication’s debt, 4iG said on Tuesday.

Under the agreement, state-owned IAI would acquire an 80pc stake in SpaceCom, while 4iG would retain its 20pc holding. They would provide USD 12m in the form of a shareholder loan bearing 10pc interest and maturing in 2035. The loan wold be proportional to ownership stakes, with 4iG providing USD 2.4m of the total.

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4iG noted that it had earlier submitted two plans for settling SpaceCom’s debt. The most recent one was accepted by bondholders, but conditions required for closing were not fully met by the deadline.

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Featured image: Gellért Jászai, the CEO of 4iG.

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