Tel Aviv District Court Judge Varda Alshech told Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) CEO and controlling shareholder and Bank Hapoalim (TASE: POLI) to try and reach a settlement instead of battling in court.
Yesterday, Bank Hapoalim petitioned the court to foreclose on assets of Europe-Israel MMS Ltd., through which Zisser controls Elbit Imaging, on which the bank has a lien as collateral for Europe-Israel's debt to the bank. These assets include shares in Elbit Imaging. The bank took the action after Elbit Imaging reached a non-binding summary of terms with two of its biggest bondholders, York Capital Management Global Advisors LLC and Davidson Kempner Capital Management LLC (DK).
"I can only regret the emerging picture, in which it seems that the parties, i.e. the company and now the bank, are apparently trying to conduct negotiations through the court," said Judge Alshech in her decision today. "The parties should negotiate, and should reach a settlement rather than fight through statements of claim filed with the court, which could snowball out of both parties' control."
Judge Alshech dismissed for now Bank Hapoalim's foreclosure petition until Europe-Israel responds to the petition. She gave the company seven days to do so.
Published by Globes [online], Israel business news - www.globes-online.com - on February 28, 2013
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