At midnight last night (Sunday), the Eisenberg family, exclusive of Liz Hardy and Esther Zuchovitzky, reached a compromise agreement. The estate is to be shared among all family members, as follows: Erwin Eisenberg is to receive 55% of the estate; his mother, Leah Eisenberg, will receive 45%, together with Emily Furman. This will be net of a deduction of $20 million, which is to go to Yigal Dimant, general manager of Israel Chemicals, who was married to the late Elfrida Eisenberg, and Zuchovitzky, if she decides to join the agreement.
Edith Rosenfeld will receive 5%, to be deducted proportionately from the shares taken by Erwin and Leah Eisenberg. Daughter Liz Hardy is being offered 5% on the same terms. The proposal calls for each of the daughters to receive 2.75% of the estate out of Erwin’s share, and another 2.25% out of Leah’s share.
Furman, as stated, will receive her portion out of the mother’s share, due to tax considerations, since she is a US citizen. Officially, Furman, like the other sisters, it to receive 5%. In fact, this depends on the agreement reached between mother and daughter.
Erwin will waive his claim to the shares of the Panamanian companies that hold control of the Israel Corporation. Hitherto, Erwin had claimed to have received these shares as a gift from his father, shortly before he died, and thus to be their owner. On his waiving this claim, the shares belong to the estate, and will be subject to distribution among all those joining the agreement, on a pro rata basis.
Erwin will continue to retain management of the group companies. As regards voting rights in the group companies, the parties to the agreement recognise the majority held by Erwin.
The principles of the agreement were presented today to Tel-Aviv District Court deputy Chief Justice Jesse Levitt. At this stage, it is not clear whether Hardy and Zuchovitzky, who have not joined the agreement, will elect to conduct a court battle, or will ultimately join the agreement.
Hardy’s counsel, Adv. Yossi Segev and Adv. Efi Perry, said in court today that, in their opinion, an alternative exists whereby Hardy can obtain a larger share. However, the two will announce their position in court, once a detailed list of the estate’s assets is obtained from the administrators of the estate, by the end of the week. "We have a written agreement with the mother", said Segev, but gave no details.
Segev said, out of court, that no details of the estate had been presented, and that they would be able to join the agreement only after being apprised of what the estate includes, rather than "something new coming up every other day".
Adv. Tuvia Erlich, representing Erwin, said in court that what was offered to Hardy and Zuchovitzky was, in his opinion, the best possible alternative. He said the parties to the agreement all accepted that , if it was inevitable that Hardy and Zuchovitzky conduct a legal battle, its upshot will not prejudice the agreement between them.
Out of court, Erlich said that "the great majority of heirs has realised that peace in the family is the way to go. This is the message that is stronger than any argument. Erwin understands that family is more important than any dispute. He is continuing to carry out his father’s spiritual will, with the full blessing of all members of the family. Erwin went halfway to meet the sisters who did not join the agreement".
Adv. Yaakov Weinrot, representing Leah Eisenberg and Emily Furman, said the agreement was consistent with the spirit of Shoul Eisenberg’s wishes, as indicated by his various wills, namely, that his son should continue to manage his business. "The only point on which we have not complied with the Deceased’s wishes", said Weinrot, "is in relation to his daughter Esther Zuchovitzky, to whom he intended to make no bequest".
The next hearing in the case will take place next Sunday. At that time, the parties who have not joined the agreement will announce whether or not they intend to join it. The court will also address the issue of the privilege of Erwin’s deposition.