Court approves IDB rescue plan
Plan proposed by Argentinean businessman Eduardo Elsztain, his Israeli partner Motti Ben-Moshe to give them ownership of debt-ridden corporation. 'I the believe company will eventually stay in our hands,' says controlling shareholder Nochi Dankner
The Tel Aviv District Court approved on Tuesday a rescue plan proposed by Argentinean businessman Eduardo Elsztain and his Israeli partner Motti Ben-Moshe that would give them ownership of debt-ridden IDB Holding Corp , a spokeswoman for IDB said.
Judge Eitan Orenstin rejected all the claims made by current controlling shareholder Nochi Dankner, referring to his allegations against Ben-Moshe as "puzzling."
The takeover, however, will only come into effect after Ben-Moshe discloses the full financing details of the deal, the spokeswoman said.
The court decision put an end to a high-profile battle over who will control the conglomerate, which through its pyramidal structure controls a slew of major companies in Israel.
Dankner said at the end of the court session, "I believe in the Israeli legal system and the last word has yet to be said. The judge forced the second group to disclose the origins of the money. I believe that the company will eventually stay in our hands."
Ben-Moshe said in response that IDB was embarking on a new road. "This is an exciting moment. In the past few weeks we were subject to a smear campaign. I was ready to present everything to the court as early as last week. I thank the judge for giving us the option to disclose and I'm certain that no investigation will stop the deal."
IDB expanded rapidly over the past decade under Dankner, whose rival proposal was rejected last week by creditors, but has been hit hard by slowing economic growth and increased market competition.
IDB Holding owes bondholders NIS 2 billion ($570 million) and its subsidiary IDB Development owes a further NIS 5.8 billion.
Calcalist correspondent Golan Hazani contributed to this report
