The whole year misses the payment of obligations due to transaction delays, payment defaults


Denizen Bushwick at 123 Melrose Street in Brooklyn (Google Maps; iStock)

Delays in a pair of big contracts and other pandemic fallout are big problems for Israel’s All Year Management bonds – again.

Yoel Goldman’s company said on Sunday it would “temporarily halt” payments to bondholders for 30 days, including a payment on its Series B bonds that was due today. The developer is also delaying the release of its third quarter financial statements and has planned a bondholders meeting Tuesday to discuss the situation.

“For greater clarity, as of the date of this report, the company has the financial resources to make the aforementioned payment,” noted All Year in a disclosure at the Tel Aviv Stock Exchange. “The board of directors has decided that at this point the company will continue to make payments on senior and secured loans, including secured bonds, and necessary operating expenses.”

All Year Series B and D Bonds are unsecured corporate bonds. Its Series C bonds are guaranteed by the Guillaume Vale hotel and office complex in Williamsburg, Brooklyn, and its Series E bonds are secured by the first phase of nearby Denizen Bushwick, a multi-family project on the site of the former Rheingold Brewery.

The value of all four series of bonds fell sharply after the announcement, with Series B bonds falling 42% from 67 to 39 cents on the dollar. All year declined to comment.

The financial situation of the whole year, which even before the pandemic faced scrutiny of investors, has been affected by the coronavirus in several ways. The occupancy rate of the promoter’s portfolio fell to 85%, while the weaker dollar against the shekel increased its financial obligations. The company’s bonds, like those of many other New York developers, have been downgraded These last months.

459 Smith Street in Gowanus (Google Maps)

459 Smith Street in Gowanus (Google Maps)

But the biggest challenge facing Goldman’s company has been delays in securing two big deals that would help relieve the financial pressure significantly: the sale of around $ 300 million. multifamily wallet to a group of investors led by David Werner, and a $ 650 million refinancing of Denizen Bushwick.

In another folder, All Year disclosed that it has missed payments on two loans since this summer, and is in negotiations with lenders to restructure those bonds, which include a $ 35 million preferred stock investment for a Gowanus development site on Smith street, and a $ 65 million mezzanine loan on Denizen Bushwick’s second leg.

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