The amount is the liability insurance cover for the company's directors and officers.
The transfer by Africa-Israel Investments (TASE: AFIL) to the banks under the noses of the bondholders continues to make waves. Earlier this week, Leviev paid NIS 670 million to the banks, including NIS 400 million to Bank Hapoalim (TASE: POLI). Soon after, Africa-Israel Series 9 bondholders turned to the court to stop the payment. Judge Varda Alshech harshly criticized the transfer, and the banks themselves.
Now, sources inform "Globes" that the bondholders are considering suing Africa-Israel controlling shareholder Lev Leviev and officers of the company for $60 million, the entire amount of the company's insurance cover for directors' and officers' liability.
In July this year, the Africa-Israel board approved the purchase of an insurance policy from an international group of insurers to cover directors and officers in the company and its subsidiaries. A month later, Africa-Israel announced that it sought a settlement with its bondholders because it could not meet payments due.
Published by Globes [online], Israel business news - www.globes-online.com - on December 16, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009