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12 Jun 2012 16:32
Emblaze Ltd ("Emblaze" or "the Company") MANAGEMENT UPDATE
Herzeliya, Israel, 12 June 2012
On April 16, 2012 the Company informed that two creditors of former director, Eli Reifman, have filed a claim against their own law firm for the amount of NIS73 million (c.GBP12 million), alleging malpractice, negligence and failure to properly secure their loans to Mr. Reifman. As part of this claim, the two creditors have also named Emblaze, and some of its directors and officers, as defendants for caution reasons, while stating that their law firm should not have relied on any third party (including Emblaze) in the conduct of their duties.
The trustee for bankruptcy of Mr. Reifman has now filed a claim, on behalf of several other creditors of Mr. Reifman, against Emblaze, and some of its directors and officers for up to NIS86.5 million (c. GBP14 million), alleging these creditors relied on the Company when they provided loans to Mr. Reifman.
As previously informed, the ethics committee of the Israeli Bar association in Tel Aviv resolved that the trustee should not represent Mr. Reifman's creditors in such claims due to a possible conflict of interest, and should resign from any such representation.
The Company believes that there is no basis or merit to any of these claims and intends to defend itself vigorously against these unjustified actions.
Enquiries: Amlika Lal, Grayling +44 20 7932 1871 Amlika.Lal@grayling.com
The Emblaze Group is traded on the London Stock Exchange since 1996. www.emblaze.com
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