Ampal-American trustee eyes OK of $27 million lawsuit settlement

By Caroline Salls

Pittsburgh, Nov. 26 – Ampal-American Israel Corp. Chapter 7 trustee Alex Spizz requested court approval of a settlement reached with lawsuit defendants Merhav (M.N.F.) Ltd. and Yosef A. Maiman, according to a motion filed with the U.S. Bankruptcy Court for the Southern District of New York.

Spizz said he filed a lawsuit on July 1, 2015 against Merhav and Maiman that sought to avoid and receive preferential transfers. The suit also alleged that the defendants made fraudulent conveyances in excess of $630,000 and sought the disallowance of some of the defendants’ claims.

According to the settlement motion, Maiman was the chairman of Ampal-American’s board of directors and its chief executive officer and Merhav’s controlling shareholder.

In November 2018, the trustee received court approval of a shareholder rights order that allows him to authorize Merhav to complete a stock purchase agreement with Emed Pipeline BV and execute a related settlement deed among Spizz, Merhav, Merhav Ampal Group Ltd., Merhav Ampal Energy Holdings LP, Maiman, EGI-Fund (08-10) Investors LLC, EGI-Series Investments LLC, Madrone Investments LP, Blue Ridge LP, Blue Ridge Offshore Master LP, BSS-EMG Investors LLC, SFIP LP, EGI-EMG LP, David Fischer, Jonathan Fischer and the Arab Republic of Egypt.

The stock sale closed on Nov. 5.

Spizz said he is holding, as of Nov. 21, $157.54 million and expects an additional recovery of assets for the benefit of Ampal-American’s estate. As a result, the trustee said he expects a distribution in excess of 50% to holders of general unsecured claims.

The trustee said the settlement will help avoid costly and lengthy litigation that could delay resolution of Ampal-American’s case and distributions to creditors.

Under the proposed settlement, the trustee will receive $27 million in satisfaction of a judgment previously entered against MNF and Maiman.

The parties will discontinue all actions pending in the bankruptcy court, all other U.S. courts and in the Israeli courts.

In addition, Maiman will withdraw specified proofs of claim filed against the Ampal-American debtor.

A hearing is scheduled for Dec. 17.

Ampal-American Israel, a Tel Aviv-based holding company, filed for bankruptcy on Aug. 29, 2012. The Chapter 7 case number is 12-13689.

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