Zisser to pay NIS 80M debt by month's end

Calcalist learns Bank Hapoalim selling off its stock in Beapart NV, businessman Motti Zisser's privately owned hotel company which was pledged as security to bank against his debt

Golan Hazani, Calcalist|Published: 10.17.11 , 08:32

Bank Hapoalim is taking legal action against Motti Zisser: Calcalist has learned that the bank informed the businessman of its decision to sell off the stock from Zisser's private hotel company, Beapart NV.

The company owns five hotels in Belgium and Holland. Zisser wishes to sell the company in order to pay a principle and interest of NIS 120 million ($33 million) which was due on August 31 but which he failed to pay.

Zisser owes the bank almost NIS 1 billion ($270 million) – three times the market cap of Elbit Imaging. At this point the bank has no designs to sell its Elbit Imaging's stock until a later stage, in the event that Zisser will not pay off his debt within a few days.

Zisser pledged his Beapart NV stock as additional security to Bank Hapoalim a year ago.

Calcalist learned that several days ago, Zisser's lawyers sent the bank a notice in which they said that they intend to pay off what they claim is an NIS 80 million ($22 million) debt, by the end of the month. Sources close to Zisser say he is currently negotiating with the bank to reschedule the payments for the remainder of the debt.

Last May, Calcalist revealed that Zisser was unable to pay Bank Hapoalim his NIS 1 billion debt, which led to an 18% plummet of Elbit Imaging's share on TASE that day, losing almost half its value since.

Zisser: Unfounded rumors

"It is most regretful that such unfounded rumors effortlessly find their way into the press. As far as I know, there is nothing to these rumors," Zisser said in response.

"A few days ago, a notice was sent to Bank Hapoalim informing the bank that I intend on transferring a payment in the last week of the month as part of the payment of the debt in question.

"This notice was received by the bank and I hope that by doing so I would have met my obligation to the bank. I hope that the bank and I will be able to reestablish a good, productive relationship such as we had until this affair."

The bank replied, "Bank Hapoalim does not comment on its affairs with its customers."