Orckit Communications Ltd. (Nasdaq: ORCT; TASE: ORCT), whose market cap at one time stood at $1.6 billion, is likely to be sold as a stock exchange shell for only NIS 500,000. The creditors of the communications equipment company, which is in liquidation proceedings, are scheduled to vote on a proposal to sell the company to lawyers Victor Tshuva and Gali Liebermann, who specialize in stock exchange shell investments.
At the same time, company founder Itzik Tamir asked company liquidator Adv. Lior Dagan to conduct a pricing procedure for the acquisition of the shell company and its patents. Tamir stated that if at the end of the pricing procedure no buyer was found for the shell company, and if Tshuva and Liebermann's bid was dropped. he would buy the shell for $150,000 (NIS 570,000).
In his court petition last week, Tamir argued that the liquidator was acting like an ostrich and ignoring his arguments. Tel Aviv District Court Judge Eitan Orenstin ruled that the scheduled meetings should not be delayed, but that Tamir could always present his proposal, as long as he provided a NIS 150,000 bank guarantee.
Published by Globes [online], Israel business news - www.globes-online.com - on June 28, 2015
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