21st Oct 2014 12:42
(An item published at 1323 BST misstated the nature of the claim made in November 2012. The correct version follows.)
LONDON (Alliance News) - BSD Crown Ltd Tuesday said it has agreed to settle claims made against it without admitting to any legal liability, agreeing to pay NIS1.975 million for a claim made in April 2012 and NIS4.2 million out of claims for NIS69.9 million made in June 2012.
The company and some of its past directors were named as defendants in claims made in connection with the bankruptcy of Eli Reifman, one of its founders and a former director.
In April 2012, two of Reifman's creditors filed a claim against attorneys who represented them in a transaction with Reifman, according to BSD. As part of that claim, the two creditors also named the company and a number of its past directors, as well as its external legal adviser and its auditors, as defendants, BSD said. The claim was for a sum of NIS73.3 million.
In June 2012, several of Reifman's creditors filed a claim against the company, several of its past directors as well as against its external legal adviser and its auditors. After the dismissal of some of those claims, the outstanding value of the June 2012 claim was NIS81.8 million.
In addition, BSD said it has been told that in relation to a claim made in November 2012, it and several of its past directors were joined as direct defendants by one of the creditors who filed the original claim, and that the aggregate amount claimed from it and those former directors has been updated to NIS22.4 million.
"The company is considering the amended claim and is yet to submit its amended statement of defence," BSD said of the November 2012 claim.
According to the prospectus published by BSD in July 2014: "In November 2012, two creditors of Mr Reifman filed a claim for NIS30 million (approximately USD8.6 million) against the attorneys involved in their transactions with Mr Reifman. Those attorneys submitted a third-party notification against numerous parties that were involved in the transaction, as well as against the company and some of its directors and officers, asserting that they are to be indemnified in the event that the claim is successfully brought against them. The third party claim is for a sum of NIS7.6 million (approximately USD2.2 million). A defence was filed in January 2013."
On Tuesday, BSD said: "Following entrance into the settlement agreements and the updated claim described above, the outstanding amounts pursuant to claims filed against the company in respect of Mr Reifman, amount to approximately NIS30 million."
BSD shares were Tuesday quoted down 1% at 25.62 pence.
By Samuel Agini; [email protected]; @samuelagini
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