17 May 2016 10:27
B.S.D. CROWN LTD - Company Update Re: Meinl Bank DepositsB.S.D. CROWN LTD - Company Update Re: Meinl Bank Deposits
PR Newswire
London, May 17
BSD Crown Ltd. (the “Company”)
(LSE: BSD)
Company Update Re: Meinl Bank Deposits
Ramat Gan, 17 May 2016
Further to the announcement dated 29 April 2016 the Company wishes to update the market on recent developments in relation to the cash deposits (the "Deposits") held by the Company (approximately US$30 million) and BGI Investments (1961) Ltd. (“BGI”), its controlling shareholder, (approximately US$2.65 million) with Meinl Bank (“Meinl”) in Austria . Following demands made by lawyers acting for the Company and BGI to Meinl, documents purporting to relate to these deposits have recently been received from Meinl, indicating that since 2013, the Deposits have been allegedly used as collateral for loans taken by off-shore companies unknown to BGI and BSD.
Further to these findings, the board of directors of each of the Company and BGI have met and the aforementioned documents were presented for their consideration .To the best of the knowledge of the Company and BGI, neither company has ever agreed to use such Deposits as collateral or as a guarantee in favour of any third party. Furthermore, the Company and BGI have in their possession documents which indicate that the Deposits are held in accounts with Meinl on behalf of the Company and BGI free and clear of any encumbrance.
The Company and BGI have instructed their lawyers to act, on their behalf, in order to explore and pursue all courses of action and rights regarding the Deposits. Once such matters have been clarified, the Company and BGI will consider the consequences on past audited financial statements of the Company and BGI.
Request to convene a General Meeting
The Company notes the announcement made on 12 May 2016 by Yossi Willi Management and Investments Limited ("YWMIL") noting that on 9 May 2016, its legal representatives, Meitar Liquornik Geva Leshem Tal, had written to the Company to request the convening of a General Meeting of the shareholders of BSD as soon as possible and no later than 42 days from 9 May 2016 for the purpose of replacing all the incumbent non-external directors of the Company with its own proposed directors (amongst other things).
The Company confirms that it has received such a request and is currently considering such request with its lawyers. The Company will provide a further update in due course.
Enquiries: Yossi Schneorson, CEO: yossi@bsd-c.com