Hapoalim wants a receiver for Heftsiba

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B”H

Wow. JPOST finally notices thousands of people losing their life’s savings because a “receivership” has been suggested?? Where is the story about who is to blame for this, huh? Nothing on the “Peace Now” Nazis?

M
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Aug. 5, 2007 10:39 | Updated Aug. 5, 2007 15:33
By JPOST.COM STAFF
http://www.jpost.com/servlet/Satellite?cid=1186066383389&pagename=JPost%2FJPArticle%2FShowFull

Bank Hapoalim, one of the major holders of the Heftsiba construction company's assets, filed a request Sunday afternoon with the Jerusalem District Court to appoint a receiver for Heftsiba. The bank hopes to allow construction of the company's housing projects to continue, keeping buyers from losing their investments.

Heftsiba had been in the process of constructing some 4,000 apartments when rumors of its impending bankruptcy sparked a surge of panic on Thursday.

While there had been rumors for weeks that the company was in trouble, concerns rose to fever pitch when it was learned that the company Electra Real Estate had pulled out of two business deals that would have given Electra a 90 percent stake in Heftsiba.

A number of Web sites reported that Heftsiba's debt was NIS 700 million to NIS 1 billion.

Last week's news sent tremors through the construction industry and prompted many buyers to drop everything and squat in still-unfinished homes.

A spokeswoman for Heftsiba said she had no response regarding the company's financial state or to reports that hundreds if not thousands of people, fearful of losing their property, had broken into homes.

Rebecca Anna Stoil and Tovah Lazaroff contributed to this report.