BSD Crown Ltd. (LSE: BSD)
Update in relation to Israel 18 court proceedings
Ramat Gan, Israel, 29 September 2016
Further to the Company's announcement dated 26 September 2016 regarding the ongoing case taking place before the Economic Department in Tel-Aviv District Court (the "Court") between Mr. Naftali Shani and Adv. Arnon Gicelter (the "Petitioners") and Israel 18, on 27 September 2016, the Court approved the terms of the loan agreement entered into between Israel 18 and Ta'aman Food Marketing Ltd ("Ta'aman") pursuant to which Ta’aman will provide a loan to Israel 18 (the "Loan") to enable Israel 18 to repay the entire debt owed to the Petitioners (the "Loan Agreement").
According to the terms of the Loan Agreement, following repayment of the debt, 10,278,251 shares of the Company and 24,909,603 shares of BGI owned by Israel 18 (but which were previously held on trust by Adv. Arnon Gicelter as security for the repayment of the debts owed by Israel 18 to the Petitioners) (“Israel 18’s Shares”) will be transferred to Adv. Kobie Amster to be held on trust as security for the amounts owed to Ta’aman under the terms of the Loan Agreement from time to time and will serve as a guarantee of the repayment of the loan.
As a consequence, the auction process being conducted by the Court in connection with the proposed sale of Israel 18’s Shares was cancelled.
Gregory Gurtovoy, chairman of the board: [email protected]