The Official Receiver to the Supreme Court: Allow attachment of the monies of the companies controlled by Gad Zeevi

Discount’s application to have him declared bankrupt is yet to be ruled on, and the District Court refused its request to raise a veil between Zeevi and the companies and to attach funds from transactions made

21.12.17 | Malka Radoszkowicz

The Official Receiver is not helping Gad Zeevi: Ahead of the hearing due to take place in the Supreme Court today (Thursday) at the request of Discount Bank to appeal against the decision that a veil should not be raised between the businessman Gad Zeevi and the companies that Discount claims to be under his control – the Official Receiver submitted his position to the Supreme Court. It supports Discount’s attempt to raise a veil that will permit attachment of funds from transactions executed in the framework of its request last August – a request that has not yet been answered – to declare Zeevi bankrupt in respect of Zeevi’s alleged debt to the Bank in the amount of approximately $22 million.

In his current response, the Official Receiver joins the position of Discount Bank, which is represented by Assaf Englard and Zohar Ilan of law firm Hamburger Evron & Co., and decides that Zeevi is to be seen as the controlling shareholder in these companies – including Mirage Development and Mirage Real Estate – and that the veil of the union between him and them should be raised. This for the purpose of temporarily attaching the companies’ funds from transactions they carried out: a transaction made between Mirage Real Estate and the company “Netzivim” to acquire Mirage Real Estate’s share of land in Lod, and the transaction for the sale of Elisha Hospital in Haifa.

Haifa District Court Judge Bettina Tauber ruled in September against Discount’s request to attach funds from the transactions, on the grounds that it was not proven that the companies that carried out the transactions were indeed under Zeevi’s control.

Zeevi claims, through attorney Udi Gindes, that he is only an officer in these companies, and that their ownership is in the hands of a family trust through his children. In contrast, Discount claims that positioning the companies as companies that are not under his control is an attempt to evade payment of his debt to the bank.

“In the accumulation of things, inasmuch as Zeevi is a director of all the companies, and is sometimes the only director, and the fact that the only beneficiaries of the entire group of companies are his wife and his children (similar to a family company), his various statements according to which he is the controlling shareholder in the Zeevi Group do indeed lead to the conclusion that Gad Zeevi is the controlling shareholder in the group of companies,” the Official Receiver’s representative, attorney Michal Dalumi has now written.