Azorim Investment, Development and Construction Ltd. (TASE:AZRM), controlled by chairman Shaya Boymelgreen, and Starwood Hotel & resorts Worldwide (NYSE: HOT), which owns the Sheraton brand, today told the Tel Aviv District Court that they have agreed to non-binding mediation with Adv. Reuven Bachar.
In February 2008, Starwood submitted a claim for NIS 126 million compensation from Azorim for the alleged violation of an agreement to transfer to it management of six hotels owned by Azorim (Sheraton Moriah Tel Aviv, Sheraton Moriah Eilat, Sheraton Moriah Tiberias, Sheraton Plaza Jerusalem, Moriah Dead Sea and Kedem Jerusalem) for 35 years in payment for an agreed management fee. According to the claim,Bank Hapoalim (LSE: 80OA insists that transferring management of the hotels contravenes a loan agreement between the bank and Azorim.
In its statement of defense Azorim claims that the suit is groundless because it did all that was required of it in order to meet its commitments to Starwood, and that management of the hotels was in effect transferred to them.
Published by Globes [online], Israel business news - www.globes-online.com - on January 20, 2009
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