Elbit Imaging Ltd. Announces Request to Delay the Payment of Principal Due Under the Series A and Series B Debentures

  Elbit Imaging Ltd. Announces Request to Delay the Payment of Principal Due
                  Under the Series A and Series B Debentures

Delay in the distribution of dividend from Plaza to the Company

PR Newswire

TEL AVIV, Israel, February 5, 2013

TEL AVIV, Israel, February 5, 2013 /PRNewswire/ --

Elbit Imaging Ltd. ("EI"or the"Company") (TASE, NASDAQ: EMITF) announced
today, that on January 31, 2013, a subsidiary of the Company, Plaza Centers
N.V., of which approximately 62.5% of the outstanding share capital is owned
by the Company ("Plaza"), published a letter that Plaza received from the
trustees and representatives of the holders of Plaza's Series A and Series B
debentures that demanded that Plaza desist from distributing a dividend from
Plaza to its shareholders and stated that legal proceedings may be taken in
the event that the Company proceeds with the distribution of the dividend.

The expected delay in the distribution of the dividend from Plaza, as well as
the decline in the price of Plaza's stock in the recent period, impairs the
Company's ability to comply with its analysis of sources and uses according to
the planned time schedule.

According to the repayment schedule of the Company's Series A and Series B
debentures, on February 20, 2013 the Company is required to pay the holders of
the debentures principal and interest in the aggregate amount of approximately
NIS 82 million (the "Upcoming Payments").

In light of the above, on February 3, 2013 the trustees informed the Company
that in meetings of holders of the Series E and 1 debentures it was agreed to
authorize them to take legal action against the Company to prevent the making
of the Upcoming Payments, and in connection therewith in a meeting that was
held between the Company and the trustees of the debentures and the joint
representatives of the Series E, F, F and 1 debentures (the "Joint
Representatives") the Company was requested by the Joint Representatives to
refrain from making the Upcoming Payments.

In light of these matters and the expected Upcoming Payments, the board of
directors of the Company decided to authorize the management of the Company to
commence accelerated negotiations with the trustees and representatives of all
the debenture holders, in an attempt to formulate an agreement with all the
debenture holders that will enable the Company to fulfill all its obligations.

In addition, in light of the damage that is likely to be caused to the Company
and to all its creditors if the Company is pulled into legal proceedings as
mentioned, and in order to allow the Company to engage in the process of
negotiations mentioned above to the fullest extent and in a manner that is
quick and efficient, the board of directors of the Company decided, at this
stage, to accede to the demands of the debenture holders and to delay the
payment of principal to the holders of the various series of debentures until
the conclusion of negotiations with them. During the forbearance period, it is
the Company's intention to make the interest payments on a regular basis to
the various series unless it is decided otherwise.

As a result of the decision of the board of directors of the Company mentioned
above, the Company has requested from the trustees of the Series A and Series
B debentures to delay the period of payment of the principal component from
the Upcoming Payments until April 1, 2013 (and to delay accordingly the
effective date of the payments).

About Elbit Imaging Ltd.

Elbit Imaging Ltd. operates in the following principal fields of business: (i)
Commercial and Entertainment Centers - Initiation, construction and sale of
shopping and entertainment centers and other mixed-use real property projects,
predominantly in the retail sector, located in Central and Eastern Europe and
in India, primarily through its subsidiary Plaza Centers N.V. In certain
circumstances and depending on market conditions, we operate and manage
commercial and entertainment centers prior to their sale; (ii) U.S. Real
Property - Investment in commercial real property in the United States; (iii)
Hotels - Hotel operation and management; (iv) Medical Industries - (a)
research and development, production and marketing of magnetic resonance
imaging guided focused ultrasound treatment equipment and (b) development of
stem cell population expansion technologies and stem cell therapy products for
transplantation and regenerative medicine; (v) Residential Projects -
Initiation, construction and sale of residential projects and other mixed-use
real property projects, predominately residential, located primarily in India;
(vi) Fashion Apparel - Distribution and marketing of fashion apparel and
accessories in Israel; and (vii) Other Activity - venture capital investments.

Any forward-looking statements in our releasesinclude statements regarding
the intent, belief or currentexpectations of Elbit Imaging Ltd. and our
management about our business, financial condition, results of operations, and
its relationship with its employees and the condition of our properties. Words
such as"believe," "expect," "intend," "estimate" and similar expressionsare
intended to identify forward-looking statements but are not the exclusive
means of identifying such statements. Actual results may differ materially
from those projected, expressed or implied in the forward-looking statements
as a result of various factors including, without limitation, the factors set
forth in our filings with the Securities and Exchange Commission including,
without limitation, Item 3.D of our annual report on Form 20-F for the fiscal
year ended December 31, 2011, under the caption "Risk Factors." Any
forward-looking statements contained in our releases speak only as of the date
of such release, and we cautionexisting and prospectiveinvestors not to
place undue reliance on such statements. Such forward-looking statements do
not purport to be predictions of future events or circumstances, and
therefore, there can be no assurance that any forward-looking statement
contained our releases will prove to be accurate. We undertake no obligation
to update or revise any forward-looking statements.

For Further Information:
Company Contact:
Shimon Yitzhaki
Chairman of the Board of Directors
Tel: +972-3-608-6048
shimony@elbitimaging.com 

Investor Contact:
Mor Dagan
Investor Relations
Tel: +972-3-516-7620
mor@km-ir.co.il

SOURCE Elbit Imaging Ltd.
 
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