Eyal Gabay and Adv. Hagai Ullman have filed an additional report with the court on the progress in the closing of the debt arrangement at IDB Holding Corp. Ltd. (TASE:IDBH).
The report states that former IDB chairman and controlling shareholder Nochi Dankner has demanded that the settlement trustees, Gabay and Ullman, should pay him NIS 850,000 in severance pay for the termination of his employment as chairman of the company. This is due to the court decision to transfer control of the company to Eduardo Elsztain and Moti Ben-Moshe, and includes a three months notice period.
The trustees say that, under Dankner's employment contract at IDB, his salary cost plus social benefits amount to NIS 247,000 a month. Dankner is also eligible for payment for unused vacation and sick days, amounting to NIS 300,000.
Gabay and Ullman say that they intend to pay Dankner his salary and social benefits under the terms of his employment contract at IDB.
Dankner's salary cost was NIS 2.74 million in 2012. In view of the negotiations for a debt settlement at IDB, in September 2012, Dankner halved his salary for one year, until September 2013. He also waived bonuses.
In addition to the payments to Dankner, the trustees reported on the measures to complete IDB's debt settlement, including the obtaining of permits from the authorities. These include permits from the Israel Securities Authority, the Supervisor of Capital Markets, Insurance and Savings at the Ministry of Finance, and the Minister of Communications.
Last week, the trustees obtained approval from the Antitrust Authority director general to complete IDB's debt settlement, but Gabay and Ullman now say that due to the activity of Ben-Moshe's Extra Holdings GmbH in Germany, an antitrust request must be filed in Germany. The trustees are also examining the need to file an antitrust request with in the US in view of the activity of Elsztain's Dolphin Group.
Published by Globes [online], Israel business news - www.globes-online.com - on February 10, 2014
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