The Company, together with GTC RE, has prepared a liquidity analysis for the next two years as
of the balance sheet date, which addresses the required liquidity for the Company to be able to
repay the principle and interest of debentures (series A and B) in February 2015 in the total amount
of €99 million, the abovementioned bank loan for an amount of €28 million in December 2014,
and its other liabilities and to finance its operations.
The repayments are likely to be funded mostly by cash to be generated through the sale of certain
assets, including the sale of investments in shares of certain subsidiaries, by raising loans (against
pledge of free assets) and / or repayment of certain shareholder’s loans and dividend distribution
by some of the Company’s subsidiaries. In this context it should be noted that the Company is
engaged directly and through its subsidiaries in a number of negotiations - in various stages –
regarding materialization of such assets. The proceeds from the realization of these above
mentioned plans will serve the Company within the limitations of the agreements reached with the
debentures holders and with Discount Bank, as disclosed in Note 28 and 41 to the consolidated
financial statements.
The realization, the price and the timing of the Company’s plans in relation to the sale of assets,
repayment of shareholder’s loans by certain subsidiaries and raising debt are uncertain and depend
also on factors that are not wholly within the Company’s control and on the willingness of third
parties to invest and grant credit. The Company believes that, the value of its total assets remains
considerably higher than its total liabilities, and in light of the current indications regarding the
ability to realize a sale of assets and/or obtain credit in the required timeframe, it will be able to
realize its plans and that it will be able to repay its liabilities as they mature in the foreseeable
future.