The Tel Aviv District Court today imposed a lien on assets belonging to Meir Chen, a manager of the Altsholer-Shaham group, due to an NIS 29 million conflict with
Feuchtwanger Investments (TASE:
Judge Sara Sirota, the vice president of the Tel Aviv District court, approved a lien at Feuchtwanger's requests on Chen's assets, other than his salary. Chen was not present at the hearing and has 30 days to submit his response to the court.
Feuchtwanger's trustee, Dr Shlomo Ness, sought the lien and also to void an options agreement Chen has with the company.
Chen holds an option that forces Feuchtwanger to buy Chen's 15.6% stake in Iscal for NIS 28.8 million. Feuchtwanger in fact paid him the money, but never received the shares. Ness argues that the option agreement was invalid, and that in any case, it was a bad deal for the company.
The agreement with Chen had not been approved by Feuchtwanger's auditing committee and board of directors, and was therefore invalid. Given that all of Feuchtwanger's directors have quit, there is no way the option agreement can be ratified before the option term expires on September 30, Ness pointed out.
Ness also noted that Iscal stock has dropped to NIS 0.7 per share, whereas Chen's option prices the shares at NIS 65.6 per share. In any case it is an unorthodox deal that requires the approval of the company's official bodies, insofar as it is also a bad deal for Feuchtwanger, he says, hence the agreement should be annulled.