Unicorn Investments and Grand Center Dizengoff St. Development & Investment are rejecting Israel Discount Bank’s demand for immediate repayment.
Israel Discount Bank (TASE:DSCT) is demanding that construction companies Unicorn Investments and Grand Center Dizengoff St. Development & Investment, controlled by the Kahtan Brothers, repay their loans within 21 days. Discount Bank granted the loans for a construction project at the intersection of Frishman and Dizengoff Streets in Tel Aviv
Unicorn owes the bank NIS 135 million, and Grand Center Dizengoff NIS 67 million. Both companies are rejecting Discount Bank’s demand, claiming, among other things, that they have reached a debt arrangement with Discount Bank. They say Discount Bank’s disavowal of the agreement is irregular, and they therefore reject out of hand the bank’s demand.
Last month, the Shaked family, which is developing a golf course project in Ashkelon, reported that the bank which provided a NIS 127 million loan for the project was demanding immediate repayment. As far as known, Benny and Dan Steinmetz have guaranteed half the loan, which was provided by Discount Bank.
Published by Globes [online] - www.globes.co.il - on April 27, 2003