Tel Aviv District Court Judge Hagai Brenner this morning issued a liquidation order for IDB Development and appointed Adv. Ophir Naor as trustee.
Tel Aviv District Court Judge Hagai Brenner this morning issued an order to open proceedings against IDB Development as well as an order for its liquidation, after ruling that the company is insolvent. At the same time the judge appointed Adv. Ophir Naor as trustee of the company, which until now had been controlled by Eduardo Elsztain.
The judge also agreed to the request of the trustees of the 14th and 15th series guaranteed bondholders to appoint a temporary receiver for 70% of the shares of Discount Investment Corporation (TASE: DISI) and 5% of the shares of Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), which are in a lien against the bonds.
Elsztain bought control of IDB six and half years ago in the context of a debt settlement, and since then he has injected some NIS 3 billion into the holding company, an investment that now looks lost. IDB's total debt to its bondholders is some NIS 2 billion.
Published by Globes, Israel business news - en.globes.co.il - on September 25, 2020
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Eduardo Elsztain