Chairman for a Day: JEC Chair Quits After Less Than 24 Hours on the Job

Shortly after Yossi Arad won a shareholders’ vote for top post, Bank Leumi - that holds shares as collateral - rebelled.

Yossi Arad steps down as chairman of the embattled property developer Jerusalem Economy Corporation after just one day on the job. December 24. 2015.
Tomer Appelbaum

Yossi Arad stepped down as chairman of the embattled property developer Jerusalem Economy Corporation after just one day on the job, after he failed to win support from Bank Leumi and institutional investors.

Arad, who has been a JEC director since 2011, had been backed by Eliezer Fishman, the businessman who formally controls 47% of JEC but whose shares are pledged to Leumi as collateral on unpaid debt. But shortly after he won a shareholders’ vote for the post on Tuesday, the bank and other JEC investors rebelled.

“It was clear to me that due to pressures exerted on the controlling shareholder [Fishman] I couldn’t continue to fill my role in a responsible way as I envision it,” Arad said in a statement Wednesday announcing his resignation.

In an interview with TheMarker, Arad accused Bank Leumi of trying to destroy JEC, which is having its own financial problems after the value of its Russian real estate portfolio collapsed. “The moment I realized this was the situation, I decided to get out,” Arad said.

JEC shares ended down 1.2% at 5.78 shekels ($1.49) yesterday.