Nochi Dankner
Photo: Tzvika Tishler
IDB board to stop funding Granovsky-Dankner offer
Trustees demand all money used to support losing bid's group be returned to company, otherwise they will file personal claims
IDB's board of directors has decided to stop supporting the Granovsky-Dankner offer after the judge residing over the case said it does not constitute the company's offer.
Tel Aviv District Court Judge Eitan Orenstein made his decision last week, and as a result, IDB will stop funding the group's expenses.
IDB Rescue
Avital Lahav, Reuters
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
Orenstein's decision came as a result of a demand from bondholders, who said that the company needed to stop using its own funds to help advance the offer. The court has approved the Elsztain-Ben Moshe as the winning offer in the debt settlement.
The board's decision was made despite the board having said that the formation and submission of a settlement offer on behalf of the company and Nochi Dankner's group of investors was for the benefit of the company and its creditors, and it would have allowed the creditors to maximize their stake in the company.
The trustees also demaned from the board that it immediately return all of the funds that were taken out of the company for benefit of the Granovsky-Dankner offer, otherwise they would file personal claims.
