Bezeq Joins Creditors’ Lawsuit Seeking to Wind Up Eurocom

Bezeq said Eurocom owed it 119 million shekels for failing to meet conditions of their 2015 deal under which Bezeq bought out Eurocom’s 50.2% stake in their Yes joint venture

The logo of Bezeq Israeli Telecommunication Corp. is seen at the company's headquarters in Tel Aviv, Israel, on Wednesday, Dec. 29, 2010.
Ahikam Seri/Bloomberg

Bezeq said on Sunday it was joining a creditors’ lawsuit to wind up its parent company, Eurocom, saying it was seeking 119 million shekels ($34.1 million). The move comes four days after Bank Hapoalim, Israel Discount Bank and First International Bank of Israel petitioned to liquidate Eurocom — the holding company owned by Shaul Elovitch that controls Bezeq — for failing to make payments on 971 million shekels of debt.

Bezeq said Eurocom owed it 119 million shekels for failing to meet conditions of their 2015 deal under which Bezeq bought out Eurocom’s 50.2% stake in their Yes joint venture. The deal was the focus of a securities probe, which ended in a recommendation last month that Elovitch and Bezeq group executives be indicted.

Bezeq said it had planned to seek the money by the end of this year but the banks’ legal action forced it to join the suit.
(Michael Rochvarger and Jasmin Gueta)