Newsco owner Sheldon Adelson today asked the Tel Aviv District Court to liquidate the free daily newspaper “Israeli”. Newsco said it would provide financing to run the newspaper for no more than seven days from today, in order to allow the sale of the paper’s assets as a going concern.
Newsco said it petitioned the court to liquidate the newspaper because of the lack of cooperation from the respondents, headed by Shlomo Ben-Zvi, with the newspaper’s court-appointed additional manager.
In its petition, Newsco announced the immediate cancellation of contracts it signed with Ben-Zvi related to their cooperation in “Israeli”, launched exactly a year ago. Newsco accused Ben-Zvi of material breach of contract, gross bad faith, deception, breach of trust, and fraud. Newsco added that additional breaches were discovered after its petition was filed concerning irregular financial actions by the respondents towards the company.
A Newsco spokesman said today, “The extraordinarily serious actions by Shlomo Ben-Zvi and his stubborn refusal to provide the court-appointed manager with information has resulted in the manager being unable to carry out his duties. He is unable to reveal the precise information about Ben-Zvi’s scandalous behavior. The decision to ask for the appointment of a liquidator is a difficult one, but Newsco’s owners have despaired of reaching an agreement that would halt Ben-Zvi’s campaign of exploitation and fraud in the ‘Israeli’ affair.”
In response to Adelson’s serious charges and a NIS 10.7 million lawsuit, Ben-Zvi said that Adelson was trying to extort from him. Ben-Zvi said that when he refused to capitulate to Adelson’s extortion, Adelson filed a lawsuit filled with lies against him.
The Tel Aviv District Court Judge nevertheless ruled that Ben-Zvi and his associates in the company appear to have done as they pleased, while blocking money that was unquestionably due to the company.
Published by Globes [online], Israel business news - www.globes.co.il - on December 25, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006