The Jerusalem District Court has approved a settlement to complete a residential project by collapsed contractor Heftsiba Ltd. in Modi'in Illit. The 428-unit project was the company's largest.
Heftsiba special receiver Adv. Yitzhak Molcho, Bank of Jerusalem (TASE: JBNK), and the contractor, Solel Boneh Building and Infrastructure Ltd. filed the request to complete the project.
Under the settlement, the buyers of the apartments will pay an additional NIS 27,500 on average for the apartments, amounting to about 1% of the apartments' value) in order to finance part of Heftsiba's debt related to the project. The Bank of Jerusalem, Solel Boneh, and Menorah Mivtachim Holdings Ltd. (TASE: MORA) will finance the rest of the debt.
This is the second settlement concerning a Heftsiba project. In January, Molcho reached a deal with Bank Adanim Mortgages and Loans Ltd. concerning 220 apartments in three projects under construction in Betar Illit and the Jerusalem neighborhood of Har Homa.
Published by Globes [online], Israel business news - www.globes-online.com - on March 2, 2008
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