IDB Holding Corp. Ltd. (TASE:IDBH) filed an urgent appeal in the Supreme Court on Monday against the debt settlement in its wholly-owned subsidiary IDB Development Corporation which was approved by the Tel Aviv District Court. IDB Holding claims that the District Court was wrong to impose the debt settlement on IDB Development without obtaining its consent, and that the decision contravenes section 350 of the Companies Law.
In the appeal, IDB Holding says that the Tel Aviv District Court was asked to discuss a precedent-setting question: "Whether it is possible to impose a settlement on a company under section 350 of the Companies Law without the company's consent?"
IDB Holding argues that although a precedent-setting question was at stake, the issue has not been discussed by the Supreme Court.
IDB Holding says that although the remedies in the District Court ruling are temporary, they have far-reaching consequences and cause IDB Holding and its subsidiary IDB Development more damage.
Published by Globes [online], Israel business news - www.globes-online.com - on July 2, 2013
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