Court endorses Dankner's loss of IDB

The Tel Aviv District Court has accepted the creditors' decision to accept the Elsztain-Ben-Moshe debt settlement bid.

Nochi Dankner has lost control of IDB Holding Corp. Ltd. (TASE:IDBH) after Tel Aviv District Court Judge Eitan Orenstin accepted the creditors vote to accept the bid of the Eduardo Elsztain-Motti Ben-Moshe consortium rather than the Dankner-Granovsky consortium.

Orenstin rejected suggestions that Moti Ben-Moshe is not in fact the controlling shareholder of German group Xtra Holdings GmbH. Orenstin said, "The claim that Ben-Moshe has no credibility is not correct. What has the Dankner consortium got to complain about? It itself did not meet its commitments."

However, Orenstin gave Ben-Moshe one week to provide full disclosure about his business activities and the settlement will only come into effect after he provides this by December 29.

Orenstin said, "There is nothing irregular about the management of Xtra. Liquidation will not solve the problems. In my opinion there is no alternative but to impose the creditors settlement. Liquidation will bring about unnecessary red tape and this would not be the best result for the creditors settlement."

He continued, "The Dankner consortium must convince the court that there were substantial irregularities in the creditors voting. It seems clear that only a negligible number of ballots were spoiled."

A defiant Dankner said after the ruling, "The last word has yet to be said - I will continue to control the company."

Published by Globes [online], Israel business news - www.globes-online.com - on December 17, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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