BSD Crown Ltd. (LSE: BSD)
Claim against Israel 18 and IBAR
Ramat Gan, Israel, 30 August 2016
Following the Company's announcement dated 19 August 2016, regarding the filing by the Company in the Economic Department of the Tel Aviv District Court (the "Court") of a motion for interim orders against Israel 18, the controlling shareholder of BGI including an order prohibiting Israel 18 from disposing of any of its assets, whether located in Israel or anywhere else in the world ("Interim Orders").
The Company hereby announces that, on 25 August 2016, and further to the motion for Interim Orders, it has filed a claim against Israel 18 and the International Bank of Azerbaijan ("IBAR") for the return by the two defendants of the sum of US$13.1 million, which amount was deposited in IBAR by the Company, as a Company deposit, and which IBAR now claims has been used as security for a loan taken by Israel 18.
In the claim it is contended that the Company has never authorized the use of such deposit as security, and that such security, if allegedly exist, has not been approved by the relevant Company organs, with regard to an interested party transaction, in accordance with the Israeli Companies Law.
For more information regarding the Company deposits in IBAR please see Company announcement dated 3 August 2016.
A court hearing on the motion for Interim Orders is to take place on the 31st of August 2016.
Gil Leidner, member of the board [email protected]