"This is another recycling of the mendacious and manipulative statements that have already been examined. Xtra Group wishes Mr. Dankner success in the future," stated Xtra Holdings GmbH owner Moti Ben-Moshe, in response to former IDB Holding Corp. Ltd. (TASE:IDBH) controlling shareholder Nochi Dankner's motion to the court to void the transfer of the company to Ben-Moshe and Eduardo Elsztain.
In today's motion, Dankner claims that he was not given access to the Israel Securities Authority and Official Receiver's report on the sources of Ben-Moshe's money. Dankner claims that the report caused him "great harm", and Tel Aviv District Court Judge Eitan Orenstin's decision to transfer the company should therefore be voided, a new court hearing held, and a new vote by IDB's bondholders convened.
Dankner claims that his auditor, Barlev, found "worrying problems" at Xtra, which raised questions about the legitimacy of the company's sources of financing, and raised concerns that the company and its owner were engaged in money laundering. He alleges that Xtra's revenue was obtained by illegal and even criminal means - fraud and money laundering.
Xtra states in its response this afternoon, "Examination of Dankner allegations from this morning, which are defined as 'additional findings found and analyzed after the meeting with the review team', only appear, not un-coincidentally, in clauses 40 through 45 of the statement by the auditor firm hired by Dankner, indicating that there is nothing in them. As is known, Xtra Group has long made it clear that does not object to the publication of the relevant findings of the review report.
"The Security Authority and Official Receiver's review team found that the source of the money deposited by Xtra Group for the purpose of the debt settlement is from accounts from routine activity by the group's companies, and there is no finding whatsoever that the source of the money is not from its business. As for control of Xtra Group, the review team found that the ownership and control in it is by Mr. Ben-Moshe alone, and no third party was found which could direct the company's abovementioned foreign activity."
Published by Globes [online], Israel business news - www.globes-online.com - on January 22, 2014
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