Leviev's Africa Israel to Renegotiate Loans

Africa Israel Group, controlled by Israeli diamantaire Lev Leviev is expected to start negotiations with banks and bond owners over restructuring debts the group generated following the world economic downturn. The company released its quarterly earnings report listing losses totaling NIS 1.45 billion ($380 million).

The company attributed most of its losses to the reduction is values for property located in Russia and U.S., specifically the New York Times building.

The current losses are in stark contrast to the profits the company showed during the first quarter of 2009 which totaled NIS 647 million ($169 million).

In press conference held in Tel Aviv today, Leviev said the company had sold assets worth more than NIS 4 billion ($1.04 billion) and that he had personally put over NIS 1 billion ($262 million).

During the press conference, Africa Israel CEO, Izzy Cohen, revealed the company may have problems maintaining its payment schedule starting in 2011 onwards.

Lev Leviev, owner of LLD, is a major diamond industry player. He has mining operations in Africa, polishing facilities in Russia and China and is Israel’s largest diamond exporter.