YAKUM, Israel, May 26, 2016 /PRNewswire/ --
Alon Blue Square Israel Ltd. (NYSE: BSI) (the "Company")
announced today that on May 25, 2015
the New York Stock Exchange (the "NYSE") delivered a written notice
to Alon Blue Square and issued a press release announcing that
trading of the Company's American Depositary Shares (ADSs) would be
suspended immediately. The NYSE also announced that the staff of
NYSE Regulation would commence proceedings to delist the ADSs from
the NYSE.
NYSE Regulation stated that the Company is no longer suitable
for listing and that pursuant to Listed Company Manual Section
802.01D, this decision was reached in view of the fact that on
May 25, 2016, the
Company filed a revised motion with the District Court of Lod,
Israel for approval of a proposed
debt reorganization. If the current plan of arrangement is
implemented with the condition requested by the investor, Mr.
Moti Ben Moshe, this reorganization
would result in nullification of the Company's shares for no
consideration. Alternatively, the Company's position is that
it is highly unlikely that any alternative to this reorganization
will leave its shareholders with any economic value.
The NYSE has informed the Company that application to the
Securities and Exchange Commission to delist the ADSs is pending,
subject to completion of applicable procedures, including any
appeal by the Company of the NYSE Regulation staff's decision.
Alon Blue Square's ADSs will
commence trading on the over-the-counter ("OTC") market today,
May 26, 2016, and its OTC ticker
symbol will be "BSRIY".
This transition to the over-the-counter market does not affect
the Company's business operations and will not change its
registration with the Securities and Exchange
Commission.
Alon Blue Square Israel Ltd. (hereinafter: "Alon Blue Square") operates through
subsidiaries. Continued operations - its Tel Aviv Stock Exchange
("TASE") listed 53.92% subsidiary, Blue Square Real Estate Ltd.,
which owns, leases and develops income producing commercial
properties and projects. The others activities include the
clearance of purchase coupons and operating the logistic center in
Beer Tuvia. Companies designated for sale - the 63.13% held
subsidiary, Dor Alon Energy in Israel (1988) Ltd, listed on the TASE, is one
of the four largest fuel retail companies in Israel based on the number of petrol stations
and a leader in the field of convenience stores operating a chain
of 211 petrol stations and 218 convenience stores in different
formats in Israel, and Na'aman
Group (NV) Ltd., a 77.51% subsidiary listed on the TASE, operates
specialist outlets in self-operation and franchises and offers a
wide range of "Non-Food" in the houseware and textile segment.
Forward-looking statements
This press release contains forward-looking statements within
the meaning of safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements may include, but are not limited to, plans or
projections about our business, our future revenues, expenses and
profitability. Forward-looking statements may be, but are not
necessarily, identified by the use of forward-looking terminology
such as "may," "anticipates," "estimates," "expects," "intends,"
"plans," "believes," and words and terms of similar substance.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual events,
results, performance, circumstance and achievements to be
materially different from any future events, results, performance,
circumstance and achievements expressed or implied by such
forward-looking statements. These risks, uncertainties and other
factors include, but are not limited to, the following: failure to
reach a settlement with holders of our bank debt and guaranteed
bank debt and holders of our Series C Debentures as well as the
trustees and creditors of Mega Retail and whether we will continue
operations; failure to satisfy all closing conditions for the
proposed debt arrangement; acceptance by the court of all or part
of the claims made by the trustees of Mega Retail; exposure to
third party claims for significant amount of Mega Retail's
outstanding debts and liabilities; financial and operational
restrictions imposed by the proposed framework for debt repayment
with our financial creditors; failure to satisfy the NYSE
requirements for continued listing; commitments to issue additional
shares which would dilute existing shareholdings and may lower the
trading price of our securities; economic conditions in
Israel which may affect our
financial performance; dependence of BSRE on Mega
Retail as a lessee of its properties; our ability to compete
effectively with large fuel companies and our other competitors;
enactment of new laws and regulations, including the enactment of
recommendations of governmental appointed committees and
regulations with respect to the procurement of petroleum products
by fuel companies and the price of petroleum products that are
subject to regulation; the effect of increases in oil, raw material
and product prices in recent years; and other risks, uncertainties
and factors disclosed in our filings with the U.S. Securities and
Exchange Commission (SEC), including, but not limited to, risks,
uncertainties and factors identified under the heading "Risk
Factors" in our annual report on Form 20-F for the year ended
December 31, 2015. You are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. Except for
our ongoing obligations to disclose material information under the
applicable securities laws, we undertake no obligation to update
the forward-looking information contained in this press
release.
Contact:
Alon Blue Square Israel Ltd.
Zehavit Shahaf, Adv.
General Counsel and Corporate Secretary
Telephone: +972-9-9618504
Fax: +972-9-9618636
Email: zehavits@bsi.co.il
SOURCE Alon Blue Square Israel Ltd.