Better Place buyers fail to meet payments

Sunrise has not yet raised the money to meet the payments for Better Place Israel, nor has it completed due diligence of the company.

Three weeks after the court approved the sale of the activities and assets of the Israeli and Swiss units of Better Place Inc. to Sunrise Ltd., the company is not meeting its payments. At today's hearing at the Lod District Court, it was disclosed that Sunrise, headed by Yosef Abramowitz, Henry Shiner, and the Association for the Promotion of the Electric Car in Israel, has not yet raised the money to meet the payments for Better Place, nor has it completed due diligence of the company.

The Ministry of Transport is also delaying transferring Better Place's import license to Sunrise, preventing it from selling the company's electric cars. Judge Ilan Shiloh gave the ministry an ultimatum to provide the license to Green Ltd., which is operating Better Place on Sunrise's behalf, by 10 am on August 6.

In early June, Better Place's four Israeli companies filed with the Lod Distirct Court for liquidation and the urgent appointment of a liquidator, after they became insolvent. Six weeks after Better Place's dream of weaning the world off oil went up in smoke, the court approved the motion by the liquidators, Sigal Rozen-Rechav and Shaul Kotler, to sell the companies' assets and activities to Sunrise.

Sunrise offered to pay NIS 18 million plus a percentage of Better Place's sales over the next five years, operate 15 battery recharging stations for two years, and employ 36-50 employees for one year. It also agreed to pay NIS 25-100 million for the intellectual property of Better Place Switzerland.

Sunrise executive Shiner has promised to pay NIS 2 million to Better Place's liquidation account on Monday in order to close the deal. The payment, ordered by the court, will cover Better Place Israel's salaries and rent.

Published by Globes [online], Israel business news - - on July 31, 2013

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

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