Real estate developer Africa Israel Investments said its ability to continue as a “going concern” was at risk as it reported a narrower quarterly loss on Sunday.
The company, controlled by billionaire Lev Leviev, has been hit hard due to the global financial and economic crisis and has been in talks for several months with bondholders to restructure NIS 7.4 billion ($1.9 billion) of debt.
Africa Israel Warns May Not Last as ‘Going Concern’
Real estate developer Africa Israel Investments said its ability to continue as a “going concern” was at risk as it reported a narrower quarterly loss on Sunday.
The company, controlled by billionaire Lev Leviev, has been hit hard due to the global financial and economic crisis and has been in talks for several months with bondholders to restructure NIS 7.4 billion ($1.9 billion) of debt.
Earlier this month, Africa Israel defaulted on a series of bonds, failing to pay NIS 557 million ($146 million) of principal to holders of a series of bonds not included in the proposed restructuring.
“Since… there is uncertainty surrounding a deal to restructure the debt and its approval by the court significant doubts exist that the company can continue as a going concern,” Africa Israel said in a statement.
It recorded a third-quarter net loss of NIS 348 million ($91 million), or NIS 6.37 ($1.67) per share, compared with a loss of NIS 2.1 billion ($550 million), or NIS 40.99 ($10.76) a share, a year earlier when Africa Israel was hurt by a sharp decline in the value of its properties.
The company attributed much of its quarterly loss to NIS 325 million ($85 million) in financing expenses due a spike in inflation which affects the costs of its bonds.
Welcome
Nu Lev welcome to the real world.
Anonymous
What’s a “going concern”?
What is a Going Concern From Wikipedia
In accounting, “going concern” refers to a company’s ability to continue functioning as a business entity (concern being an early-20th century term for “business” or “enterprise”). It is the responsibility of the directors to assess whether the going concern assumption is appropriate when preparing the financial statements. A company is required to disclose in the notes to the financial statements whether there are any factors that may put the company’s status as a going concern in doubt.
Financial statements are prepared on the assumption that the entity is a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the normal course of operations. Different bases of measurement may be appropriate when the entity is not expected to continue in operation for the foreseeable future.[1] Where a company is not a going concern, the break-up basis is used where all assets and liabilities are stated at Net Realizable Value.
The company’s auditor must consider whether the use of the going concern assumption is appropriate, and whether there are material uncertainties about the entity’s ability to continue to operate as a going concern that need to be disclosed in the financial statements.[2] An auditor who concludes that substantial doubt exists with regard to the appropriateness of the going concern assumption is required to issue an opinion reflecting this; a modified opinion if the company has appropriately disclosed the doubt and risks and a qualified opinion if the company has not made appropriate disclosures.[3] These are called “going concern” opinions (the terminology is counter-intuitive; such opinions are issued because the company is NOT expected to remain a going concern).
To Welcome
Considering the staggering amount of tzedakah this man has given and the vast army of people he has helped, I find your comment astoundingly insensitive. Lev pulled so many out of the muck of the “real world” in a physical as well as spiritual sense… May G-d triple his fortunes from his most wealthy days, so that he be able to give more tzedakah than ever before.
Dismayed
The First comment (Welcome) is disgusting and should never have been published. This man did so much for Judaism, that his financial loss is a terrible blow for Jewish institutions worldwide.
That anyone would express glee at another Jew’s misfortune, let alone a Jew that has single-handedly done so much for Yiddishkiet, is repulsive.
As it says on the bottom, Comments must be approved before being published. A little discretion, please!
ShmuliT
Hey Rechama, was wondering if you’d also find this one!
yosef
Wikipedia has it all wrong:
When a company audits its outgoing debt in term of it ratio to the basis of its liabilities, the internal reponsobilities lies in its external provocation without the audit.
A lot is said about stock audits and a lot is to be added. But just as a compound ratio wouldn’t be a good assumption based on its rationality, its hard to prognosticate its fallibilities.
Eli
The 1st comment is a mean thing to say about someone who gave so much Tzedokah.
Anyone who is able to, should help Leviev. To show how much we apreciate all the Tzedokah he gave.
To Welcome as well
why why why do we have to be jealous when someone is doing well and then happy when he is not? What happened to the us, we are supposed to be Rachmonim, (this is besides the fact that he is one of the biggest Ballai Tzedakah in recent history). you owe him an apology. we should be Davening for him to do wel,l as we know he can withstand the nisayon of money and do the right thing to make this world ready for Moshiach.
Feh
Agree! No 1 (Welcome) comments are repulsive.
Lev Levaiev has TRANSFORMED the world with his fortune, his generosity knew no bounds. It is a terrible blow to chassidim, to Jews, and to the Rebbe that he is suffering financial losses.
May Hashem triple and quadruple his brochos to him so that he can continue to light the candle of Hashem in our world.
TO no 1 Welcome Feh,feh, feh!!!!!!