Published On: Mon, Mar 23rd, 2015

Israeli Court Blocks Loan Deal for Alexander Granovsky

Granovsky's deal with of the Williger brothers, for a loan of $21 million, will not go through

Alfa Bank has scored a success in its legal battle against Alexander Granovsky, who controls food company G. Willi-Food Investments Ltd. (TASE:WLFD).

On Sunday, an Israeli court stopped Ukrainian businessman Alexander Granovsky from mortgaging his holding in BGI Investments (1961) Ltd. (TASE: BGI), which owns a controlling stake in Willi-Food, in favor of the Williger brothers, in return for a loan they were going to grant him, Globes reported.

Now the deal with of the Williger brothers, for a loan of $21 million, will not go through, much the way a previous attempt by Granovsky ato draw new Israeli partners into his businesses in Israel has failed.

Granovsky, who is the victim of his home country Ukraine’s economic woes, has been experiencing cash flow trouble over the past year, and hasn’t been meeting his financial commitments.

Last month, Alfa-Bank, one of the largest banks in Eastern Europe, started legal proceedings against Granovsky, over a $15 million debt (the original looan was for much less, but interest and late fees have been ballooning it). The bank gave the loan to one of Granovsky’s companies, against his personal guarantee.

Granovsky accused Alfa Bank of fraud.

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