The banks are not concerned about dissolution of Eurocom; they will put up a fight for the Saidoff deposit

Naty Saidoff wants to withdraw ILS 50 million shekels, which he deposited as a security deposit ¢ First feelers put out to Discount Investments to bring them back to the negotiating table

12.03.2018 | Irit Avissar

A day after the Saidoff Group announced it was withdrawing from the acquisition of Eurocom, the banks are getting ready for an alternative solution. The banking system is not deterred about dissolution of Eurocom. “If another buyer doesn’t appear, we’ll go to dissolution – it’s not a bad solution,” says a senior figure in the banking system.

The banks also expect there will be a fight over the ILS 50 million Saidoff deposited as a good faith security deposit, and which he now wishes to withdraw. “The banks have suffered damage from Saidoff’s conduct and the deposit will be a major issue in our demands,” the banks say.

In addition, some of the banks are putting out feelers to representatives of Discount Investments. The latter refused to comment on the subject. By way of reminder, when Discount Investments decided to withdraw from the acquisition a month ago, it left itself an opening to return to compete. “The company will continue to monitor developments in connection with the process of formulating a creditors arrangement in the Eurocom Group and may consider the possibility of submitting an up-to-date bid for the said creditors arrangement, in accordance with the circumstances,” Discount Investments said a month ago.

In the meantime, today (Monday), the unsecured creditors of Eurocom Real Estate (Tzemach Hammerman and the Rubinstein company) submitted their objection to the creditors arrangement. They claim that the debt to the consortium in Eurocom Real Estate is in fact a Eurocom Communications’ debt, to which Eurocom Real Estate was a guarantor – and not the reverse, as presented to this day.

They claim this is a significant detail because the Midtown project is the main asset of Eurocom Real Estate whereas the main asset of Eurocom Communications is satellite operator Spacecom. Accordingly, in this scenario, they request that the Spacecom shares be sold first rather than those in the Midtown project (which are pledged to the consortium), so that there will still be assets from which to repay the remaining creditors in Eurocom Real Estate.

Tzemach Hammerman is represented by Attorney Gil Sabarov of law firm Shnitzer Gottlieb Samet & Co.; and the Rubinstein company is represented by attorneys Assaf Englard, Zohar Ilan and Anat Libin of law firm Hamburger Evron & Co.