After dismissing the petition for leave to appeal by IDB Development Corporation, Supreme Court Judge Noam Sohlberg today dismissed the corresponding petition by its parent company IDB Holding Corp. Ltd. (TASE:IDBH) in the debt settlement proceeding under Tel Aviv District Court Judge Eitan Orenstin.
Judge Sohlberg based his dismissal of IDB Holding's petition with the same arguments he used to dismiss IDB Development's petition to postpone the deadline for the sale of its stake in Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS).
"IDB Holding is a separate legal entity," wrote Sohlberg, "But it wholly owns the issued share capital of IDB Development, and it is therefore logical to consider the two as a single economic entity, and to consider the conduct of IDB Holding in the hearing in view of this situation."
On June 9, Judge Orenstin issued a detailed interim decision in the debt settlement proceedings and creditors' petitions before him. The decision included setting a date by which IDB must sell its stake in Clal Insurance, in order to inject capital into the companies in the cluster.
Two weeks later, IDB Development filed a petition for leave to appeal against the district court's ruling. Subsequently, it agreed to Judge Sohlberg's recommendation to focus the appeal solely on postponing the date of the sale. This petition was also dismissed, and a parallel petition by IDB Holding on one of the questions not dealt with in the petition by IDB Development has now also been dismissed: whether it is possible to impose a settlement or compromise on a company under Article 350 of the Companies Law. The judge ruled that this matter should first be heard in the district court.
Published by Globes [online], Israel business news - www.globes-online.com - on July 22, 2013
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