Connect with us

Hi, what are you looking for?

Jewish Business News

Court

Now His Ship May Be Sinking Dankner’s Partners In Ganden Holding Seek Debt Repayment

Nochi Dankner’s silent partners in the control of Ganden, the company through which he rules the IDB group, Jack and Mark Schimmel, are now seeking an unpaid debt of NIS 6.7 million ($1.9 million) from the former IDB parent company.

dan-575.2014330T170854
(L-R) Jack Schimmel and Nochi Dankner
A petition to liquidate Ganden Investments Ltd., through which Nochi Dankner once controlled IDB Holding Corp. Ltd. (TASE:IDBH), was filed with the Tel Aviv District Court today by two foreign companies controlled by Jack Schimmel. Jack and his brother, Mark, are longstanding partners of Dankner, and own shares in Ganden.

The petition states that the cause for request is Ganden’s unpaid debt of NIS 6.7 million ($1.9 million) for a bloc of securities that Schimmel bought as part of the “friends offering” made by IDB in February 2012. The two foreign companies had a contract with Ganden, under which, two weeks after the offering, they sold back to Ganden the 250, 000 IDB shares and 83, 000 warrants, and that Ganden promised to pay them in 12 months at the value of the deal or at the payment date, whichever was higher.

On March 11, 2013, the value of the securities was NIS 6.7 million, but Ganden did not pay Schimmel’s companies, either then or subsequently. The petitioners asked the court to appoint Adv. Michael Spiegelman as temporary liquidator of Ganden.

The Schimmel family, a leading real estate player in the UK, owns 9% of Ganden, a private company controlled by Dankner. The Schimmel family also used to own stakes in Dankner’s private carrier,  Israir Airlines and Tourism Ltd., which was sold to IDB in a controversial deal. In October 2013, Schimmel stepped down as a director at IDB, after ten years.

Ganden owes the banks NIS 530 million, including NIS 450 million toBank Leumi (TASE: LUMI) and the rest to Mizrahi Tefahot Bank(TASE:MZTF). Ganden’s shareholders are guarantors to NIS 240 million of the debt to Bank Leumi and NIS 40 million of the debt to Mizrahi Tefahot Bank.

The Schimmels also have a large financial interest in IDB, because of an agreement signed in 2009 between one of their companies and IDB unit Property and Building Ltd. (TASE: PTBL). The Schimmels will receive 12% of profits from the sale of properties whose purchase they initiated. In 2013, they received $3.8 million from the sale of Barney’s in Chicago, and they will receive tens of millions from the sale of the HSBC building in New York.

Published by Globes [online], Israel business news – www.globes-online.com 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Newsletter

Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

empty

The contract signed between the Israeli government and Pfizer shows clearly and unequivocally that this is a clinical study on humans - The agreement...

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

Business

Now Platika joins and elite club of $10 billion plus Israeli firms.

Advertisement