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Developments in the Peled-Givony affair moved to the steps of Tel Aviv District Courthouse over the weekend. The launch of the Securities Authority investigation into group managers Rafi Peled, Arieh Givony, Tal Jaegerman and other controlling shareholders in the group was the opening shot in a race to the courts.

On the one hand, the companies in the group are seeking court protection from angry creditors that will enable them to survive financially and continue day-to-day operations in the short term. On the other hand, creditors, including banks and minority shareholders, have begun filing petitions for receivers and liquidation of the companies and their assets, hoping to save something of the huge sums of money the companies owe them. The wholesale resignations of directors from group members' boards also sent many racing into court.

Continental Bank yesterday filed a petition for the appointment of a receiver for Peled-Givony member Hayl Holdings, which owes it about NIS 57 million. The Tel Aviv District Court hearing was postponed until Wednesday.

Feuchtwanger Industries filed a petition yesterday seeking a three-month stay of the liquidation proceedings against it. Israel Discount Bank filed a petition yesterday seeking a receiver for the company whose debts amount to NIS 138 million, claiming it had granted the company NIS 24.6 million in loans and credit and the company has not met payments on the debt. The hearing on Discount Bank's request was also scheduled for Wednesday.

The court had already on Friday granted fund manager Leumi Pia an injunction against the exercise of put options Hayl had granted group member Mashav Refrigeration for Feuchtwanger Industries shares. The option had been mortgaged to Continental Bank against NIS 36 million in Mashav bank deposits.

Also on Friday, Arieh Givony's privately-held Miav, which holds a 35-percent stake in Mashav, had asked for a three-month stay of proceedings. Due to the request, a demand from a contractor seeking repayment of funds from Miav for liquidation of the company was rejected.