David and Hila, the two children of Mordechay Zisser, the former controlling shareholder of Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) have petitioned the court to be allowed to repay the NIS 15.5 million mortgage on his 3,000-square meter house on an 8,000-square meter lot in Petah Tikva.
Zisser lost Elbit Imaging as part of the company's NIS 2.8 billion debt settlement in December 2013. Earlier, Bank Leumi (TASE: LUMI), which granted Zisser the mortgage for the house, initiated bailiff's proceedings to recover his debt to the bank. To save taxes, Zisser registered the property in the name of a private company to which he pays rent.
With the start of Zisser's financial problems, he began missing payments on the mortgage, and the outstanding debt to Bank Leumi, including arrears and interest, is now NIS 20 million. At the request of Bank Hapoalim (TASE: POLI), which became Zisser's receiver, the court transferred the property to a receiver, who will try to sell it. Bank Hapoalim estimates the value of the property at NIS 71 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 15, 2014
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