The judge said it was astonishing that major sums could be transferred on the eve of debt talks.
Two days before Lev Leviev was due to pay his debt to Israel's banks, Judge Varda Alshech has accepted the petition of Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) Series 9 bondholders and issued an ex-parte order prohibiting the first payment of NIS 260 million.
Alshech requested an explanation within 48 hours.
In her decision Judge Alshech said that the circumstances of the case made it astonishing that significant sums could be transferred to creditors of a certain type on the eve of discussions about the debt arrangement.
Judge Alshech said that Africa-Israel, which had in effect on the one hand declared insolvency over its inability to repay its debts to the Series 9 bondholders, on the other hand was paying out other amounts, when it is not clear if the company would become completely insolvent.
Published by Globes [online], Israel business news - www.globes-online.com - on December 14, 2009
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