Liquidator Moshe Leon has not refunded residents who left the project. He is negotiating to sell it for $10 million.
The financially troubled Lev Avot assisted living facility in Rehovot owes NIS 40 million. Residents who bought apartments in the project under the deposit method, but have since left, have not been refunded, in violation of their contracts. Lev Avot owes Israel Discount Bank (TASE: DSCT ) NIS 40 million and at least $500,000 to its residents.
Lev Avot liquidator Moshe Leon told “Globes” that he was negotiating to sell the building for $10 million. The proceeds will repay debts to residents and the banks.
Lev Avot apparently became financially troubled after promising to fully refund deposits by residents, instead of the usual 2-2.5% deduction a year over a 10-year period. Le Avot has been in liquidation proceedings for three years. The company met its obligations to its residents until recently, but since January 2003, it has been unable to refund deposits to residents who left.
Lev Avot was built in 1992.
Published by Globes [online] - www.globes.co.il - on March 9, 2003