Eurocom Group, the controlling shareholder of Israel’s largest telecommunication firm Bezeq, was tracked for liquidation and receivership by a Tel Aviv court on Sunday.
During the 10 days before the liquidation order goes into effect on May 3, the banks will try to reach agreements with the consortium of Eurocom Real Estate’s creditors, which holds a lien on shares in Spacecom and Midtown, Globes reported.
The court order was issued at the request of the creditors, Israel Discount Bank, Bank Hapoalim and First International Bank of Israel, Calcalist website reported. Sunday’s ruling culminates a process which began at the end of 2017 when the three banks filed a request to break up Eurocom, saying it was insolvent.
The order comes as the owner of Eurocom, Shaul Elovitch, and Bezeq executives have been embroiled in investigations regarding their dealings with the Communications Ministry and Prime Minister Netanyahu in what came to be called Case 4000. They claim they are innocent of any wrongdoing.
Elovitch has been under pressure from creditors to sell Eurocom, which reportedly owes Israeli banks some 1 billion shekels. Talks for a sale to buyers including Argentine billionaire Eduardo Elsztain and U.S.-Israeli businessman Naty Saidoff failed to come about, however, hence the court orders on Sunday.
“This is a natural next step after no willing buyer appeared for Eurocom,” Saar Golan, an equity trader at Meitav Dash Brokerage in Tel Aviv, said. “It will perhaps be easier to find buyers for the specific assets within Eurocom, including Bezeq, SpaceCom, and real estate assets, then selling the parent company en bloc to an investor.”