News Column

BRIEF: Business as usual at B. Yair despite police probe

May 28, 2014

Globes, Tel Aviv, Israel



May 28--Notwithstanding suspicion of money laundering and underworld ties, it's business as usual at B.Yair Building Corporation 1988 Ltd. (TASE:BYAR). In a notice to the TASE today the company said that, on Tuesday, subsidiary Sidi Prague SRO secured a NIS 120.8 million (696.9 million Czech koruna) loan for the second stage of a project in Prague. The principal will be repaid by September 30, 2017. The loan carries a PRIBOR interest rate plus 3.3% and will be repaid in annual installments.

B. Yair added that its bondholders were given collateral for the project.

On Tuesday, the gag order was lifted on the main suspects in the scandal at B. Yair, which is suspected of laundering NIS 60 million for crime boss Yitzhak Abergil. They are B. Yair chairman Yair Biton and COO Yoram Biton.

On Monday, the remand of the main suspects, including Abergil, in the case was extended. The Police say that they have evidence of direct corruption between Abergil, who allegedly functioned as an "unofficial director" at B. Yair.

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(c)2014 the Globes (Tel Aviv, Israel)

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Source: Globes (Tel Aviv)