Union Bank today petitioned the Tel Aviv District Court for an ex parte receivership for Zeevi Holdings, in which Gad Zeevi holds a 75% controlling share, while the Heifetz brothers from Russia own 25%. Zeevi holds some of the main companies in his group through Zeevi Holdings, including Zeevi Networks, Zeevi Computers and Technology, Keshet Broadcasting, and Malam Systems.
The petition was filed in respect of an alleged NIS 8.3 million debt, resulting from Zeevi Holdings' guarantee of the debts of Zeevi Trustees and Finance to Union Bank.
Sources inform "Globes" that the large banks, which also granted large loans to Zeevi Holdings, are considered likely to oppose Union Bank's petition for receivership. The banks involved include Bank Hapoalim and The First International Bank of Israel, which granted credit to Zeevi Holdings (formerly Clal Sahar) and Zeevi Trustees and Finance. The banks are expected to support their opposition with the claim that Union Bank is a smaller creditor of Zeevi Holdings. If the Court grants Union Bank's request, it would reduce the chances of the other banks, which are larger creditors, to obtain repayment of their loans.
In a situation in which one bank petitions for receivership for a debtor that also has debts to other banks, the other banks can join the petition, make no response, or oppose receivership.
The Zeevi group responded that it was convinced that the solution would be found in an out-of-court settlement, in the framework of its current negotiations and restructuring plans.
Published by Israel's Business Arena on November 6, 2001