Ampal-American Israel Corporation (Bulletin Board: AMPLQ; TASE:AMPL) chairman, president and CEO Yosef Maiman is set to leave the company by court order, 11 years after he acquired it from the Steinmetz family for $174 million. Ampal's current market cap is just $2.5 million. Maiman's resignation is part of the hearings at the US Bankruptcy Court for the Southern District of New York on the transfer of control of the company to its bondholders, who are owed NIS 900 million.
The transfer of control will result in the departure of other Ampal executives, including CFO Irit Illouz. Until the court proceedings are completed, it will appoint a person to save the company, subject to approval of the court and the bondholders meeting.
Ampal's business collapsed in the wake of the Egyptian revolution and the termination of gas deliveries to Israel by Egypt's East Mediterranean Gas Company (EMG), sending Ampal's huge investment in the company down the drain.
Ampal's collapse caused severe losses to the company's bondholders, but far less to Maiman and Illouz, who made $23 million in salary between 2006 and 2011: $14.2 million for Maiman and $8.4 million for Illouz. In 2011, as the company was struggling with the Egyptian debacle, Ampal executives were paid $4.1 million, including $1.8 million to Maiman, $1.1 million to Illouz, and $1.2 million to VP Eran Meltzer, who also serves as CEO of Ampal subsidiary Gadot Chemical Terminals and Tankers Ltd.
In addition to his salary, Maiman made $1.3 billion, mostly in cash, in party at interest deals in the sale of EMG shares from his private company, Merhav Group to Ampal in 2005-07.
Published by Globes [online], Israel business news - www.globes-online.com - on February 21, 2013
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