Elbit Imaging announces updated notice from Bank Leumi

theflyonthewall.com

Elbit Imaging announced, further to the company's announcement dated March 20, that it has received a notice from Bank Leumi le-Israel B.M., which the company vigorously reject, stating that the Bank plans to exercise its rights to withdraw the securities deposited by the company in its securities accounts with the Bank as security for the company's obligations to the Bank, and sell such securities to partially offset the company's outstanding obligations to the Bank in the approximate amount of $12.9M. The company denies the Bank's rights and in particular, its claim that allegedly, the Bank holds the securities as a security. In addition, the company has received a series of notices from the Bank stating that, beginning May 27, the Bank will terminate the credit lines provided by the Bank to certain accounts maintained by the company and two of its subsidiaries at the Bank and that following such date any outstanding interest remaining in such accounts will begin accruing interest at an extraordinary rate, despite the fact that those subsidiaries have credit balance in those accounts. The company intends to vigorously reject and defend such claims and demands.

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