Viola Credit will provide Suny Electronics Ltd. and its subsidiary Scailex Corporation with ILS 250 million in loans. Suny at the top of Ben-Dov's pyramid, will receive ILS 50 million, which will serve for part of the company's debt settlement that is being drawn up; and Scailex will receive ILS 200 million, which will enable it to meet its bond payments over the coming year, even without dividends from its main holding, Orange franchisee Partner Communications Ltd. The Consumer Price Index (CPI) linked loans to Suny and Scailex will be for four years and bear 7% annual interest. Viola Credit has the right to a bonus of 3% of the loans when they is granted, and an additional payment of 2% of the loans' amount when they mature.

Suny and Scailex will cover the loans' costs, bringing the effective weighted interest rate to 9.3% a year. Viola Credit will also receive kickers: Suny will give the firm an option to buy 3.75% of Scailex; and Scailex will give the firm an option to acquire 4% of its capital at a value to be set by an assessor, and a second option to acquire 11% of its capital, at the average market cap during the 30 days preceding the granting of the loan. Suny will use the loan to repay its ILS 28 million loan from Mizrahi Tefahot Bank, and Viola Credit will obtain a lien on 1.4% of Partner's shares held by Suny.

The stake is currently worth ILS 48 million. Scailex will not give Viola Credit any collateral, but it must meet the financial covenants, which will the parties will set. The loans are subject to Suny reaching a debt settlement, which will guarantee that the company will not be in breach with its bondholders, to whom it owes ILS 250 million.

Early next week, the bondholders will convene to vote on Suny's proposed settlement, reached after negotiations with them. The settlement includes Ben-Dov transferring bonds with a nominal value of ILS 10 million to the company in exchange for an issue of capital notes, which will become subordinate debt, and the sale of Suny's stakes in Internet portal Tapuz People Ltd. and in collision warning systems developer Mobileye Ltd.