Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) is attempting to acquire insolvent European aircraft maintenance company New EAS, the company's controlling shareholder Bruno Lechevin has told French newspaper "Le Figaro." However, sources at IAI have told "Globes" that the Israeli company has no interest in New EAS, which is based in southern France and is owned by French and Spanish companies.
Lechevin asked the French courts to allow him to allow for the recovery of the company and not to compel him to sell to one of seven bidders - one of which he claims is IAI.
New EAS sources also claim that IAI must take some responsibility for the European company's financial troubles. The companies are in dispute over €1 million, which EAS claims IAI owes it for maintenance work on several military aircraft. Because of IAI's refusal to pay the amount, EAS is refusing to release the military aircraft. EAS told the court that IAI is refusing to continue talks on buying the company on it giving up its claim to the disputed €1 million.
Sources in Israel say that the money IAI owes EAS is far less than €1 million and has not been aid due to dissatisfaction with the work carried out in France. Sources say that IAI is only interested in leasing the hangar where the aircraft are held for the purposes of carrying out the maintenance work.
Israeli government owned IAI plans to raise NIS 3 billion on the TASE in the coming months at a company value of NIS 12 billion in order to acquire a number of companies around the world.
Published by Globes [online], Israel business news - en.globes.co.il - on December 18, 2018
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