Israeli Banks Take Telecoms Tycoon Elovitch to Bankruptcy Court

Three Israeli banks asked a court Wednesday to break up Eurocom Communications Ltd., saying it’s insolvent, Bloomberg News reported. The company is part of Shaul Elovitch’s Eurocom Group Ltd., the controlling shareholder of Israel’s largest telecommunications firm. Bank Hapoalim Ltd., Israel Discount Bank Ltd. and First International Bank of Israel Ltd. told Tel Aviv District Court that Eurocom Communications owes them 961 million shekels ($275 million), and asked the court to appoint lawyers to oversee the sale of assets pledged against the loans. A spokesman for Eurocom said the company was still reviewing the court papers and had no immediate comment. Spokespeople for Discount Bank and Bank Hapoalim confirmed that the banks had filed the court papers, but otherwise declined to comment. A spokesman for First International Bank could not be reached. A forced bankruptcy could spell the end of Elovitch’s reign at the top of Israel’s telecom industry. Read more.