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16 Apr 2012 12:39
Emblaze Ltd ("Emblaze" or "the Company") MANAGEMENT UPDATE
Herzeliya, Israel, 16 April 2012
On January 17, 2012, the Company announced that the trustee for the bankruptcy of former director, Eli Reifman, had obtained court permission to represent some of Mr. Reifman's creditors in a claim against Emblaze, and some of its directors and officers for up to NIS200 million (c. GBP34 million), and that no such claim had yet been filed.
Recently, the ethics committee of the Israeli Bar association in Tel Aviv resolved that the trustee for Mr. Reifman's bankruptcy should not represent Mr. Reifman's creditors in this claim due to a possible conflict of interest, and should resign from any such representation. This stance is very much in line with the Company's previously announced view and the Company remains confident of succeeding with its appeal to the Supreme Court at the hearing scheduled for October 2012 against the mere representation permission that was granted to the trustee.
The above contemplated claim included two major creditors who have now decided to act independently and have filed a separate claim against their own law firm for the amount of NIS73 million (c.GBP12 million) out of the above contemplated claim, 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.
As has been clarified before, the Company has had no involvement in Mr. Reifman's personal affairs or his relationships with his creditors and continues to believe that there is no basis or merit to any of these claims against the Company, its directors and officers.
Enquiries:
Jonathan Shillington/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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