Real estate developer Inbal Or is in a cross fire of an Israel Tax Authority criminal investigation, allegations by apartment purchasers, and business problems, but at least one threat was removed today. Or has reached agreement with Avraham Wolloch, an apartment buyer who filed a liquidation petition against Or City Real Estate, owned by Inbal Or, and will withdraw his petition.
An urgent joint petition by Or City Real Estate and Wolloch to Tel Aviv District Court Judge Eitan Orenstein stated, "In view of the dispute between the parties concerning the identity of the apartment on Chelnov St. sold to Wolloch, and given Wolloch's wish to cancel the deal, the parties agree that the transaction will be canceled, and that the Wolloch's payment (NIS 400,000, C.M.) will be immediately reimbursed."
According to the parties, when this settlement was signed, Wolloch was given a check reimbursing him for his payment and expenses. The parties told the Judge that in view of the agreement, Wolloch was withdrawing his petition for liquidation of Or City Real Estate and the appointment of a temporary liquidator.
Judge Orenstein has not yet ruled on Or and Wolloch's joint petition. He asked the official receiver for his position on the company's liquidation. The official receiver responded that he did not oppose the petition for withdrawal of liquidation request, and the parties are now waiting for the Judge's decision in the matter.
Or City Real Estate lawyer Adv. Dan Novhari said, "The parties acted according to the previous agreements between them for canceling the sale and returning the petitioner's money, and the dispute between them concerning the date on which this was to be done has been arranged and solved."
According to Novhari, "This actually is an arranging of a previous agreement that does not require a court hearing. The basis of the agreement and arrangement is obviously the company's financial soundness, and there was actually no reason from the beginning for the liquidation request."
Novhari added that the parties were now awaiting the decision by the District Court, and were confident that the case would be closed with the same speed at which the liquidation petition had been filed. He said that the commotion in the media concerning the process would dissipate. "It is important to emphasize that the company stands fully behind its obligations, including the signed documents, and as agreed between the parties."
Two days ago, Wolloch filed a petition for liquidation, alleging that Or had sold him an apartment that was already sold to someone else. The petition, filed through Cohen, Wilchek & Co. managing partner Adv. Avner Cohen, alleged that Wolloch had purchased an apartment in a project on Chelnov St. in Tel Aviv marketed by Inbal Or, but after paying NIS 400,000, had discovered that the apartment had already been sold to someone else, who had registered a warning in the Land Registry, and that the advance paid had not been transferred to the trust account for the project.
Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2016
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