19 Aug 2016 14:14
B.S.D. CROWN LTD - Company UpdatesB.S.D. CROWN LTD - Company Updates
PR Newswire
London, August 19
BSD Crown Ltd. (LSE: BSD)
(the “Company”)
Company Updates
Ramat Gan, Israel, 19 August 2016
Settlement agreement between Israel 18 and Mr. Naftali Shani
Further to Company's announcements dated May 10, 2016, with respect to settlement agreement between BGI's controlling shareholder, Israel 18, Mr. Naftali Shani and Adv. Arnon Gicelter (Mr. Shani and Adv. Gicelter, collectively: the "Petitioners"), the Company has received the following additional information from BGI:
On August 17 2016, Adv. Joseph Shem-Tov, who was appointed as an officer of the court, to sell or realize shares of BGI and the Company owned by Israel 18 (the “Shares”), and held by the Petitioners to secure Israel 18 debt, upon the failure of Israel 18 to make the Initial Settlement Payment, filed a request for an order from the court: (i) that, in light of several offers made to purchase the Shares, a delay of 30 more days to sell the Shares is required in order for him to evaluate further such offers and (ii) during such time, the Petitioners should be forbidden to make any disposition or transaction regarding the Shares including BSD shares that Israel 18 purchased and are held by the Petitioners until all the debt will be paid (the "Injunction").
On August 18 2016, the court granted the Injunction requested until August 25, 2016 when a further hearing will be heard.
Company's motion for an interim order against Israel 18
The Company announces that on August 18 2016 it filed, to the Economic Department in Tel Aviv District Court (the "Court"), a motion for interim orders, against Israel 18, the controlling shareholder of BGI, to secure an amount of up to US13.1 M out of any monies that Israel 18 is or might be entitled to receive from the sale of any shares in BGI and/or in the Company - either pursuant to the terms of the settlement agreement with the Petitioners referred to above or any other sale of shares (following the payment of any outstanding amounts owed by Israel 18 to Fortissimo Capital Management Ltd., if shares securing such debt are sold).
The Company also requested an order forbidding Israel 18 from disposing any of its assets, whether located in Israel or anywhere else in the world.
The Court gave an ex-parte decision, ordering the freezing of any monies received by the respondents from the sale of shares. A hearing regarding the Company's motion is scheduled for August 25, 2016.
The order was requested by the Company in order to secure all rights it may have in connection with IBAR deposits referred to in the Company's announcement on August 3 2016.
Israel 18's announcement regarding the Settlement agreement with Mr. Naftali Shani
After the filling of the request by Adv. Shem-Tov as mentioned above, BGI received a letter from Israel 18, stating that Israel 18 considers the settlement agreement to be canceled in light of the interference by the Petitioners and violation by the Petitioners of the settlement by way of interfering with the Shares sale process referred to above.
The company will provide an update in due course.
Enquiries:
Gil Leidner, member of the board: office@bsd-c.com