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13/05/2009
The District Court of Tel Aviv (Honorable Judge Alsheich): Controlling Shareholders Must Not Perform Any Unilateral Actions That Can Dilute Company's Assets When the Company Encounters Bankruptcy, or Even When on the Verge of It.

The District Court of Tel Aviv (Honorable Judge Varda Alsheich) has determined in the matter of Milomor, Ltd. v. Berdichev, C.P.A, in his capacity as the trustee of Milomor, Ltd., that controlling shareholders must not perform any unilateral actions that can dilute company's assets when the company encounters bankruptcy, or even when on the verge of it.

The Court has also determined that it doubts its ability to bind Israel Discount Bank, Ltd. to the settlement that the Court was asked to approve by the trustee, since no assurances were offered to the bank.

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