Habas HZ Investments Ltd. (TASE: HABS) liquidators Adv. Guy Gissin and Adv. Gil Oren asked the court on Monday for an urgent hearing to allow them to take legal action against Duet Asset Management Ltd. of the UK, instead of signing an investment agreement with it.
For months, the bondholders of real estate developer Habas have preferred Duet Fund's debt settlement proposal over the proposal by Aspen Group Ltd. (TASE:ASGR). Duet proposed injecting €57 million into Habas in exchange for its main asset, Dutch REIT Nieuwe Steen Investments NV (NSI) (AEX:NISTI).
When Duet withdrew its offer, Habas, previously controlled by Herzel Habas, went into liquidation proceedings in early October. Negotiations with Duet continued to try and reach a deal.
In the motion to the court, the liquidators state, "Despite many efforts, the negotiations failed to end in a reasonable agreement that would meet the interests of the liquidators, because Duet's new offer is not only less than its original offer, but even exposes the company to additional and greater risks. "Fulfilling the legal rights to Duet under the present circumstances is preferable, despite the uncertainty it creates, to the alternative investment proposal by Duet."
The liquidators ask the court to enforce Duet's commitment to carry out the original deal, or pay compensation for breaching its commitments.
Published by Globes [online], Israel business news - www.globes-online.com - on October 28, 2013
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