A blow to Eduardo Elsztain: IDB's lawsuit against him will be heard in a court in Israel

April 11, 2024   

The Tel Aviv District Court rejected the appeal filed by IRSA, which is controlled by former IDB controlling shareholder Eduardo Elstein, an ultra-Orthodox businessman from Argentina - and ruled that the IDB bondholders' lawsuit against IRSA will take place in Israel. For new customers: Special holiday loan – 30,000 shekels without interest According to a report by Golan Hazani in Calcalist, the judge rejected Irsa's claim that it is a foreign company with no assets in Israel and that its structure is consciously and intentionally excluded from Israeli jurisdiction. IDB, which was controlled by Elsztein and Irsa, pledged in 2019 to transfer NIS 210 million to its bondholders in three installments. IDB trustees Ofir Naor and Renan Gersht sued Irsa and the subsidiary Dolphin, through which it controlled IDB, for the remaining debt, which amounted to NIS 143 million. The court ruled in two decisions that this was not a frivolous claim and rejected the claim that Irsa is not a proper and proper litigant. With the rejection of the appeal, the trial is expected to begin with the claim by IDB's bondholders for the debt. Elsztain lost control of IDB after refusing to make the payments he had committed to the bondholders.