"No agreement has been reached ¿ we continue the liquidation process," announced representatives of Union Bank of Israel during the hearing on the bank's request to liquidate Gad Zeevi's Zeevi Holdings, which has a NIS 8.3 million debt to the bank.

Yesterday it was reported Zeevi and Union Bank told the court they were on the verge of signing an agreement according to which the First International Bank of Israel will buy Zeevi's debt to Union Bank. Zeevi and Union Bank asked the court for a one-day extension to decide on the matter.

The purchase was agreed on last Saturday night by the CEOs of the two banks and FIBI was to pay Union NIS 6.75 million. The latter would drop its request to liquidate the group, whose total debt comes to NIS 80 million.

Union Bank today claimed the Zeevi group was seeking a wider credit agreement, which would delay the payment promised the bank. The bank was opposed to the move, since it believes this violates the agreement made earlier.

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The judge determined that it is the court's duty to prevent liquidation of companies, particularly when all that is required is time, which does no damage to the lenders.

The judge therefore decided to postpone the liquidation hearing, originally set for early April, by another three months.