Bank Hapoalim (TASE: POLI) has asked to join the Israel Tax Authority's request to declare Eliezer Fishman as bankrupt, over his his NIS 1.8 billion debt to the bank. On August 2, the Tax Authority filed a request to the Tel Aviv District Court to issue a receivership order against Fishman and declare him bankrupt due to his NIS 196 million tax debts. Yesterday (Tuesday), the bank filed a request to join this procedure.
Bank Hapoalim's request is not directed at Fishman Group companies, or any person in these companies, but at Fishman himself. Sources linked to Bank Hapoalim told "Globes" today that bank's objective in filing this request is to protect Fishman Group companies and enable them to continue working as usual.
"Following the request of the Income Tax Department in the Tax Authority to issue a receivership order against Fishman and declare him bankrupt, Hapoalim requests to immediately join this request, due to the non-repayment of Fishman's debt to the bank, which totals more than NIS 1.8 billion," The bank's request stated. "In such a state of events, and since this process had already begun, the bank, which is probably Fishman's largest creditor…considers it vitally important that the court lets it join the process."
Moreover, the bank requested that advocates Pinhas Rubin and Yaron Elhawi from the Gornitzky & Co. law firm be appointed as special managers for the businessman's assets, or alternatively appoint them as temporary receivers for all of Fishman's properties, assets and businesses. Hapoalim requests that the advocates gain the authority to demand and receive all documents, financial data and any further information directly or indirectly relating to Fishman's properties, assets and businesses, and take any necessary and reasonable actions to maintain and oversee all of his businesses and assets."
The bank stated that it is of course aware of the Tax Authority's separate request to appoint a functionary for Fishman's properties on its behalf. However, it claims, "unfortunately, the bank's dominance and seniority in terms of overall debt, as well as its familiarity with Fishman Group companies, leads it to believe that its request to appoint advocates Rubin and Elhawi as functionaries is of high importance."
In addition to his debt to Bank Hapoalim and the Tax Authority, Fishman and the companies controlled by him have generated NIS 2 billion debts to Bank Leumi (TASE: LUMI), which has already received a court approval to realize a lien held on Fishman's assets to repay the debt. So far, the bank has sold Fishman's holdings in the Jerusalem Economy Ltd. (TASE:ECJM) (JEC) for NIS 200 million. Further properties Bank Leumi holds a lien on have been estimated at NIS 350 million in the past. Therefore, even after the assets are sold, debt repayment to Leumi is expected to be highly partial. Fishman has further debts to Israel Discount Bank (TASE: DSCT) , Mizrahi Tefahot Bank (TASE:MZTF) and Union Bank of Israel (TASE: UNON).
Eliezer Fishman is the controlling shareholder in "Globes."
Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2016
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