Bank Leumi May Demand Immediate Repayment of NIS 75 Million from Liam Harish
Translated & summarized from Calcalist by baba
Real estate firm Liam Engineering Group Harish may face a NIS 75 million repayment demand from Bank Leumi for failing to meet project financing conditions, including sales targets. The company is negotiating an extension with the bank. This situation impacts its bondholders, whose bonds are currently trading at a high yield. Liam Harish has also seen significant changes in its ownership structure over the past year.
The story in 5 lines · by baba
- Bank Leumi may demand NIS 75 million repayment from Liam Harish for unmet financing conditions.
- Liam Harish failed to meet apartment sales targets for its "Liam Village - Harish Ma'of" project.
- The company is negotiating with Bank Leumi for an extension on the financing deadline.
- Liam Harish's bonds are trading at a high yield, reflecting significant investor risk.
- Ilan Mikner lost his controlling stake, while Yariv Lerner became the largest shareholder.
Real estate company Liam Engineering Group Harish is facing a potential demand for immediate repayment of NIS 75 million from Bank Leumi after failing to meet the conditions of its financing agreement. The company reported that it did not fulfill the requirements for the second phase of its "Liam Village - Harish Ma'of" project, which includes residential, commercial, and office spaces. A key unmet condition was achieving a specific sales target for apartments by November 1st, as stipulated in the financing agreement. Liam Harish is currently in negotiations with the bank to extend the deadline. Other outstanding conditions include meeting early sales targets and settling betterment levies, for which the company has not yet received a payment voucher despite completing planning requirements for a full building permit.
Bank Leumi has the right to demand immediate repayment of the credit already extended for the project, though it has not yet announced its intentions. This situation could raise concerns among the company's bondholders, as delays in bank financing might hinder project progress, increase financing costs, and reduce future surplus funds pledged to them. Liam Harish raised NIS 115 million in May 2025 through a public bond offering at an 8% annual interest rate. Currently, these bonds are trading at a gross yield to maturity of approximately 17%, reflecting a high-risk premium demanded by investors, with a final maturity date in 2030.
The company's latest financial report for the end of June 2026 revealed challenges in the project, with only eight apartments sold by that date out of 153 planned. While sales improved to 17 by the report's publication in August, this pace still falls short of the financing agreement's targets. The company estimates an additional NIS 328 million is needed to complete the project. As of the end of June, Liam Harish had equity of NIS 31.7 million, alongside NIS 109 million in debt to bondholders and NIS 93.6 million in bank and institutional credit.
Additionally, Liam Harish experienced significant shareholder changes over the past year. Ilan Mikner, a former controlling shareholder, lost his position after failing to provide guarantees and capital commitments exceeding NIS 200 million, which were intended to ensure the company's continued operations. In contrast, his partner, Yariv Lerner, owner of the Wecom cellular chain and Negev Ceramics, assumed capital commitments of NIS 100 million, becoming the largest shareholder.