A group of former executives in Elbit Vision Systems Ltd. (Bulletin Board: EVSNF) are the buyers of Mivtach Shamir Holdings Ltd's (TASE:MISH) 47% controlling interest in the company. Mivtach Shamir sold its stake in the company yesterday as part of Elbit Vision Systems' bank debt structuring deal. Elbit Vision Systems is now controlled by its former CFO Yaron Menashe and former COO and Elbit Vision US Inc. president Sam Cohen.
Cohen will become CEO of Elbit Vision, replacing Gal Barak, and Menashe will again become CFO.
Elbit Vision Systems also sold its ScanMaster Systems (IRT) Ltd. business, acquired for $8.5 million in 2004, to former chairman and CEO David Gal and VP R&D Ofer Sela for $1.45 million, $500,000 of which will go to Elbit Vision.
Elbit Vision Systems develops and manufactures automatic optical web inspection and quality monitoring systems. ScanMaster develops ultrasounic instrumentation, inspection and imaging systems, and transducers. Elbit Vision has been in financial difficulties for several years, and made a number of cutbacks.
Elbit Vision's share closed at $0.07 yesterday, giving a market cap of 3 million. Yesterday, Mivtach Shamir stated in its financial for the first quarter of 2010 that it had written off its entire NIS 7.6 million investment in Elbit Vision and NIS 215,000 of its owner's loan to the company. Mivtach Shamir increased its stake in the company in January, just six months before selling the entire holding.
In the bank debt settlement, Bank Hapoalim (TASE: POLI) and Bank Leumi (TASE: LUMI) forgave $2 million of Elbit Vision's debt to them. The company will repay an additional $1 million in debt over five years, and a further $600,000 within ten years. ScanMaster will repay its $2 million debt over ten years and repay its $675,000 to Elbit Vision over the same period.
Published by Globes [online], Israel business news - www.globes-online.com - on June 2, 2010
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