Tel Aviv District Court deputy president Judge Varda Elshech has appointed a receiver for real estate developer Shaya Boymelgreen that will come into effect from April 1 2011. The court also issued an order preventing Boymelgreen from leaving the country.

The order was made in response to a request by Israel Discount Bank (TASE:DSCT) to declare Boymelgreen bankrupt and appoint a receiver due to a debt of over NIS 75 million to the bank.

As part of the decision, Judge Elshech severely criticized the conduct of Boymelgreen. She said, "It is totally unacceptable that a man can conduct his business in Israel, take credit from the State of Israel and the banks in Israel, and then invite everybody to fly to the US to discuss matters with him."

Judge Elshech also said that the receivership order will come into effect on a date that will give Boymelgreen enough time to arrange his debt and other matters.

Shaya Boymelgreen control Boymelgreen Capital Ltd. (TASE:BMGN), which controls Azorim Investment, Development and Construction Ltd. (TASE:AZRM).

Published by Globes, Israel business news - www.globes-online.com - on December 28, 2010

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