21st Oct 2015 10:36
LONDON (Alliance News) - BSD Crown Ltd Wednesday said its ultimate controlling shareholder, Israel 18 BV, will pay off its outstanding debt before the end of the month, allowing it to avoid entering liquidation.
On Tuesday, BSD Crown received a notice from Israel 18 that an urgent motion had been filed in the District Court of Haifa for the liquidation and appointment of temporary liquidators for Israel 18.
The motion, filed by Fortissimo Capital Management Ltd, SG Textile Holdings Ltd, and Z Birinboim Holdings Ltd, was based on a claim that Israel 18 has failed to comply with its debt obligations to those companies.
Israel 18 told BSD Crown that it would challenge the applications at a hearing held Tuesday.
On Wednesday, BSD Crown said Israel 18 informed the court on Tuesday that it would pay its outstanding debts to those companies that filed the motion before October 29. Due to that commitment, the court denied the motion to appoint temporary liquidators to Israel 18.
The hearing will continue on November 4, with all eyes on whether those debt repayments have been made by Israel 18 beforehand.
BSD Crown has not revealed what implications the case would have on the company should Israel 18 fail to make those repayments, nor how much Israel 18 has in outstanding debt or what stake it holds in the company.
BSD Crown shares were untraded on Wednesday morning, last trading at 18.0 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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