ISRAEL MEGA FUNDING CORP.

Discounting and Selling Non-Performance Loans/Debts Is a Common Practice

* * * * * We Buy Bank and Government Loans/Debts * * * * *

Debt Equity Swap For Anything of Value

We buy, sell, trade, negotiate and barter from $5 million to $100 billion US Dollars In 180 Countries Around The World

Israel Mega Funding Corp. will swap anything, so let’s make a deal!

We swap anything of value from jets to islands, etc., etc.

ISRAEL MEGA FUNDING CORP.

World Class Equity Swap Meets the New Economy

WE EQUITY SWAP LAND, OFFICE BUILDINGS, LUXURY BUSINESS JETS, YACHTS & SHIPS, MORTGAGES, ISLANDS, WINERIES, OIL & GAS WELLS, RESORTS, HOTELS, AEROSPACE COMPANIES, FAMILY ESTATES, SHIPPING PORTS, AIRPORT TERMINALS, RAIL COMPANIES, ETC., ETC.

Israel Mega Funding Corp. helps facilitate transactions by bringing together equity-rich firms and vendors who have assets and services they are willing to supply in exchange for stock options as full or partial payment. While the terms of each transaction will be unique, an equity swap can involve all stock options as payment, a combination of options and U.S. dollars, or a combination of options, cash and trading assets.

The recent global economic downturn has seen a considerable increase in corporate restructurings involving debt/equity swaps, and there have been a number of reported swaps involving companies listed on internationally recognized exchanges. There have also been a number of private company restructurings that have been less well publicized for obvious reasons. But what does a debt/equity swap actually involve and what are the key actions that must be taken by banks to ensure a successful resolution to their client’s problems?

Essentially a debt/equity swap, substitution or restructuring describes a capital reorganization of a company in which a creditor (usually a bank, possibly together with other banks, bondholders and creditors) converts indebtedness owed to it by a company into one or more classes of that company’s share capital. A debt/equity swap is likely to form part of a rescue operation of a company’s circumstances where a company is in a troubled state, but its creditors, especially its principal bankers, will recognize that any such proceedings will usually mean less by way of return than if they subordinate some of their debt for equity - the rationale being that with a lower debt repayment profile they will receive an acceptable equity return over the longer term once the company returns to profitability or is sold.

The debt/equity swap may also involve an associated cash-raising exercise by the company (for example a rights issue or the introduction of new shareholders). It is also likely to involve the provision of continued bank facilities to the company. As far as the company is concerned, a key objective of debt restructuring is usually to render it a more attractive vehicle for the injection of new monies by investors.

With Third World’s total debt burden now estimated to exceed in the trillion of dollars plus, no one argues that debt-equity swaps are a solution to the debt crisis, but Israel Mega Funding Corp. is part of the solution of helping these nations and conglomerate corporations solve their massive financial problems.

Israel Mega Funding Corp. deals with many large Fortune 500 corporations as well as many large conglomerates and third world’s tough-talking creditors and governments. They can be surprisingly flexible at times – particularly when they are in need. With debt-strapped developing nations stiffening their resistance to repayment, Israel Mega Funding Corp. has introduced new easy way to eliminate unprofitable loans from their portfolios.

In an increasingly popular maneuver, Israel Mega Funding Corp. is teaming up with multinational corporations to swap unwanted Third World loans for investment in the developing world.

The technique grew out of the burgeoning secondary market in loans to debt-ridden Third World nations, particularly in Latin America. In this market, Mexican debt has been selling at about 60 percent of its face value – Peruvian debt at about 20 percent.

The debt-equity swap brings together debtor, creditor and capital investor. For example: A U.S. bank wants to rid its portfolio of a $10 million loan it made to Mexico. A major multinational wants to expand its Mexican subsidiary. The bank sells the $10 million loan to the multinational in the secondary loan market for $4 or 5 million – its value in the secondary loan market. The company, in turn, sells the loan back to Mexico for $8 million worth of investment in its subsidiary.

In practice, debt-equity swaps are complicated transactions that can involve several brokers and are subject to both domestic and international currency regulations. Although the most common kind of swap has involved multinational investment in exchange for external public debt, some countries permit private debt to be exchanged and some banks have invested directly in debtor economies.

To date, banks are estimated to have eliminated more than $10 billion in unwanted loans using this technique. And companies like Nissan, general Motors, Fiat, Chrysler, American Express and Dow Chemical have used the mechanism to invest or retire the domestic debt of foreign subsidiaries. Over a dozen debtor nations, led by Mexico, Chile, and the Philippines, have already established or are actively considering debt-equity swaps.

“It’s a win-win situation,” says Kenneth R. Dusang, president of Israel Mega Funding Corp., which recently swapped a $100 million loan for an investment in 3,500 rooms in luxury hotels in Mexico.

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