December 24, 2017 / 2:56 PM / a year ago

Israel's Bezeq seeks 119 mln shekels in case against Eurocom

JERUSALEM (Reuters) - Bezeq Israel Telecom has asked a court if it can be allowed to join three banks petitioning to break up and liquidate its debt-laden parent company, Eurocom Communications, in the hopes of recovering 119 million shekels ($34 million).

Bezeq, in a statement to the Tel Aviv Stock Exchange on Sunday, said Eurocom owes it that sum after failing to reach certain milestones from a 2015 deal in which Bezeq bought control of satellite TV operator YES from Eurocom.

The deal is at the centre of a securities authority investigation into possible fraud and financial reporting offences.

Three leading Israeli banks, Hapoalim, Israel Discount and First International filed the petition last week, including a motion to appoint observers to oversee Eurocom’s operations.

Eurocom, which owes nearly 1 billion shekels to the banks, has said it was examining the implications of the legal proceedings and would agree to the appointment of observers subject to the approval of the Communications Ministry.

The court is due to discuss the case on Monday.

($1 = 3.4817 shekels)

Reporting by Ari Rabinovitch; Editing by Keith Weir

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