Ampal-American Israel Corp. filed for chapter 11 protection as it faces deepening financial troubles in the wake of a halt to natural gas supplies to Israel from Egypt, Reuters reported today. Ampal holds 12.5 percent of East Mediterranean Gas Co., the sole supplier of gas from Egypt to Israel until the Egyptian government cancelled its 20-year agreement signed in the Mubarak-era earlier this year. Ampal has sought to renegotiate agreements with its bondholders on three series of bonds for eight months and has proposed postponing paying the principle on its bonds by two years while offering bondholders shares in the company.
