Union Bank to court: First Int'l has told us nothing about new Zeevi arrangement

No agreement has been reached regarding the liquidation request Union Bank of Israel filed against Gad Zeevi's Zeevi Holdings. Union Bank this morning informs the court that "until the time of this filing, no one approached Union Bank about the new arrangement."

In a hearing in Tel Aviv Magistrates Court on Sunday, Zeevi's representative told the court an agreement for additional credit from First International Bank of Israel was given to FIBI CEO David Granot for review that same morning. The credit was to be granted against liens on Zeevi Holdings and its subsidiaries.

The NIS 25 million credit was for a period of 6 to 8 months. The money would be used to repay Union Bank, which would receive NIS 6.75 million of the NIS 8.3 million owed, Apax Partners & Co., Ampal American Israel Corporation (Nasdaq:AMPL) and the Gahelet Education Fund, which lent the company NIS 5.6 million. The company would also use the money to fund its day-to-day activity and to complete its restructuring and asset sale plans for the next few years.

Union Bank representatives in the hearing confirmed Granot had asked Union Bank for two more days to review the arrangement. Both sides asked the court for a 72-hour extension for Zeevi's representative to inform Union Bank of whether the agreement was accepted.

Union Bank indicates in today's filing that "in spite of the bank's willingness to accept First International's request for two days review, the wait has apparently not been useful."

The Zeevi Group states it expects First International's response this afternoon.

First International made no comment to the news.

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