The Tel Aviv District Court today appointed a receiver for Emblaze Ltd. (LSE: BLZ) founder and chairman Eli Reifman because of $35 million in debts. This was a preliminary step to declaring him bankrupt.
Judge Varda Alshech ruled, "A more suitable case is almost inconceivable. There is an urgent need to put an end to Reifman's exploits, to issue a receivership order against him and to appoint a receiver who will examine the condition of his assets and the legality of his conduct."
Alshech stayed legal proceedings against Reifman, forbade him from leaving the country, and appointed Adv. Eitan Erez as special administrator for his assets. Reifman will notify the receiver on the state of his assets, expenses, and debts within a week.
In her sharply worded decision, Alshech said, "The case before us is an extreme and extraordinary case in its severity. Reifman attracted his creditors with presentations and worthless guarantees for many months, violated compromise agreements one after the other, and ultimately invented a false version of no value in order to completely deny his debts. All of this was done while he was testifying about his difficulties, and asking his creditors for patience, and at the same time executing a long series of liens and other measures intended to neutralize in advance their ability to seek repayment from him by legal means."
Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2009
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