As Parent Company Heads To Liquidation, Control Struggle at Israel’s Biggest Telco Continues

On Sunday, a Tel Aviv district court judge ordered the liquidation of Eurocom Communications Ltd., the communication arm of Israel-based Eurocom Group, and ordered its real estate arm into receivership, CTech reported. Eurocom's most attractive asset is Bezeq, Israel's biggest telecommunication provider and a monopoly in the country, which it holds through subsidiaries. Attempts to sell Eurocom were stymied due to shareholders opposition in Bezeq. The directives will take effect on May 3rd. The judge did not approve Eurocom's creditor arrangements. Eurocom, its subsidiaries and its owner and chairman Shaul Elovitch are hundreds of millions of dollars in debt, with the biggest creditors being Israel's three largest banks: Bank Hapoalim, Bank Leumi, and Israel Discount Bank Ltd. Mr. Elovitch has been attempting to sell Eurocom or its subsidiaries for the past few months, while also contending with an investigation from Israeli police for his part in "case 4,000," an alleged bribery case involving Israeli Prime Minister Benjamin Netanyahu. Read more.