The State Attorney today announced at the Tel-Aviv District Court that an arrangement had been reached with Geotek Communications of the United States, forming part of the arrangement with subsidiary company Geotek Technologies Israel. Unless the arrangement is finalised by October 15, and approved by the court, it will expire.
Adv. Gilat, temporary liquidator of Geotek Israel, convened the major creditors and presented them with the principles of the arrangement. The arrangement consists mainly of the sale of the license for the use of the technology developed by Israel Weapons Development Authority (Rafael) for civilian purposes, and the patents developed and registered on the basis of that technology. In light of the sensitivity of the matter, the liquidator is of the opinion that the content of the negotiations should not be exposed at this stage, and as soon as an overall arrangement is reached, he will submit it to the court for approval.
Today the court issued a liquidation order for Geotek Israel. The liquidation order was sought by Rafael and Tadiran Telecommunications. Rafael claimed a $21 million debt, while Tadiran Telecommunications claimed a NIS 920,000 debt (correct for 1998) in respect of equipment and services supplied to the company.
The temporary liquidator of Geotek Technologies stated, in the framework of the application for approval of fees, that patents developed by the company in the name of the parent company, Geotek US, had been concealed, under guise of other acts, but to investigate the concealment of the assets would take hundreds of hours and cost the liquidation fund a great deal of money.
Published by Israel's Business Arena July 14, 1999