Israel Credit Lines Settlement Nears

YERUSHALAYIM (Hamodia Staff) -

Israel Credit Lines (ICL), a company that went bankrupt in 1997 as a result of bad loans and unwise business deals, seems on the verge of settling with its investors, Haaretz reported on Monday.

Major Israeli oil and natural gas exploration investors appeared close to a 60 million shekel settlement this week that would terminate their legal exposure in the liquidation of ICL.

It would mark the end of nine years of litigation.

According to a draft of the agreement, which is expected to be signed in the coming days, payment will be expected in the amount of NIS 57 million, to be divided by the Livnat and Tsuff families, which hold controlling shares in ICL, though the precise figures were not available.

The settlement would bring down the curtain on one of the most complex liquidations of a publicly-traded company in Israeli corporate history. A major impediment in the case was the destruction of Israel Credit Lines’ company archives in a fire in 1999, making it very difficult for company receivers to find documents related to the company’s collapse.

After a lengthy investigation, company receivers filed a lawsuit against 42 defendants for NIS 500 million, which then bogged down in the courts for years.