Gaydamak avoids bankruptcy with settlement

In March, the Tel Aviv District Court issued abankruptcy warning against Gaydamak in the amount of NIS 90 million.

Arcadi Gaydamak has reached an out-of-court settlement with Balram Chainrai and Kital Holdings & International Development Ltd., following which the Tel Aviv District Court cancelled Chainrai and Kital's petition to declare Gaydamak bankrupt.

In March 2010, the court accepted Chainrai and Kital's petition and issued bankruptcy warning against Gaydamak in the amount of NIS 90 million. Gaydamak was ordered to pay Chainrai $23 million, plus interest from the date of the Supreme Court ruling against Gaydamak in September 2008. Gaydamak was also ordered to pay court costs.

The petition to declare Gaydamak bankrupt came out of the dispute between Chainrai and Kital controlling shareholder Levy Kushnir over the sale of the controlling interest in Ameris Holdings Ltd. (TASE:AMRS.B1) for $42 million. Gaydamak was due to acquire Chainrai and Kital's stake in Ameris for $23 million, but when they exercised their call option, Gaydamak said that he did not have the money.

Published by Globes [online], Israel business news - www.globes-online.com - on June 23, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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