Lev Leviev’s Africa Israel Investments Gets 'Going Concern' Warning

Real estate developer Africa Israel Investments released its third-quarter financial report Sunday, attaching to the report a statement that its ability to continue as a “going concern” was at risk if it fails to restructure NIS7.4 billion ($1.9 billion) of debt in a plan pending court approval.

“Since… there is uncertainty surrounding a deal to restructure the debt and its approval by the court significant doubts exist that the company can continue as a going a concern,” Africa Israel said in a statement.

Africa Israel, controlled by Israeli diamantaire Lev Leviev, failed to pay NIS 557 million ($147.37 million) to bondholders earlier this month. It recorded a loss of NIS 348 million ($92 million) in its third quarter, compared to a loss of NIS 2.1 billion ($555.63 million) in the third quarter of 2008.

Last year, the company attributed its steep losses to the reduction in values for its properties located in Russia and U.S., specifically the New York Times building. The decline in real estate prices, particularly in New York, continues to weigh heavily upon Africa Israel.

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.