Tel Aviv District Court Judge Eitan Orenstin has postponed his decision on the fate of control of IDB Holding Corp. Ltd. (TASE:IDBH) as the 15-month debt settlement saga continues and Nochi Dankner tries to hang onto the debt ridden holding company. Orenstin announced that there will be a further discussion on a date yet to be announced, after which he would hand down his decision.
Last week the IDB bondholders voted to accept the bid of the Eduardo Elsztain-Motti Ben-Moshe consortium rather than the Dankner-Granovsky consortium, meaning that Dankner looks set to lose control of the company if the court backs the vote.
Court proceedings have focused on the unclear financial resources available to Ben-Moshe, the controlling shareholder of German group Xtra Holdings GmbH.
Ben-Moshe took to the witness stand to say that he is the owner of Xtra Holdings. He said, "I am the only controlling shareholder and I don't hold control for somebody else and I've documents for what I am saying."
Orenstin asked Ben-Moshe why in his bid with Elsztain had he be reluctant regarding the duty of disclosure, and did he not agree that the duty of disclosure must be full regarding the law and the date. Orenstin asked, "Do you agree now to full disclosure and transparency."
"I agree," responded Ben-Moshe.
Ben-Moshe's lawyers insist that they submitted to the court information about Ben-Moshe's sources of financing last night at 11 pm. In response, Orenstin said that he had still not seen these documents and thus his decision to postpone the ruling.
Published by Globes [online], Israel business news - www.globes-online.com - on December 15, 2013
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