Bagir announced, as part of the company's recovery plan, an agreement with its lenders, Bank Leumi and Discount Bank to clear all outstanding bank debt (approximately $21 million). Additionally, the company intends to undertake a private placement to raise approximately $8.5 million (Private Placement). Under the agreement the company's two principal lenders have agreed to accept a partial repayment and then to write-off the balance of all bank loans amounting to approximately $21 million and associated obligations, subject to the company fulfilling the following conditions to them pro rata before 31 December 2016: Cash payment of $6.3 million to be funded from the proposed Private Placement (Cash Payment). Allocation to the lenders of 8.33% of the company's total issued share capital post the completion of the private placement. On receipt of the cash payment and issue of new ordinary shares to the banks, each of the banks shall write-off the outstanding balance of the obligations and liabilities of the company to the banks and any liens, mortgages, and guarantees created in favor of the banks, will also be cancelled. Additionally, if the company generates annual EBITDA above $6.5 million between 2016 and 2024 then a contingent payment will be due of 50% of the excess of annual EBITDA generated above $6.5 million up to a maximum payment in aggregate of $8.0 million. The company intends to raise approximately $8.5 million (before expenses) by way of a private placement from both existing and new shareholders. Of the net proceeds from the private placement $6.3 million will be used to repay the lenders and the balance will be used as working capital to support the business operations. The private placement is interdependent on the completion of the bank refinancing. Completion of the private placement is subject inter alia to shareholder approval, which will be sought at a general meeting of the company.