Bankers Trust Rejects Charges It ‘conspired’ with Arab Interests to Damage an Israeli Shipping Firm

Bankers Trust Co. claimed today that reported charges that it “conspired” with Arab interests to damage an Israeli shipping firm “are absolutely false in every respect.” A statement released by the New York-based bank referred to the sale by auction of five Israel-flag vessels owned by Maritime Fruit Carriers Ltd. of Haifa, of which Bankers Trust is a creditor.

According to Bankers Trust, Maritime Fruit reportedly took action in an Israeli court aimed at preventing the sale of the ships and in the course of that action, reportedly made the allegation that Bankers Trust has conspired with Arab interests and financed the take-over of the ships by a Swedish concern, the Salen company.

“There is no truth whatsoever in any statements to the effect that Bankers Trust or any of its subsidiaries conspired with Arab interests to damage MFC. These statements are particularly reprehensible.” the bank stated. It noted that Bankers Trust has a five percent minority interest in the UBAF Arab American Bank in New York “and maintains banking relationships with numerous Arab clients.”

But, the statement noted “the bank also has been a major lender to Israel since the country’s founding and has close relationships with numerous customers in Israel.”

ROLE OF BANK EXPLAINED

The statement explained that Bankers Trust International Ltd., London, a wholly-owned subsidiary, was, along with a number of other banks, a major lender to Maritime Fruit which encountered serious financial difficulties last year. It said that efforts by the banks to rehabilitate the Israeli concern were unsuccessful “when other lenders not in the Bankers Trust syndicate took action against Maritime Fruit and when charter arrangements securing the credits were cancelled.”

The actions taken by the Bankers Trust syndicate relative to Maritime Fruit “have been purely business decisions and no discussions have been held with any Arab interests or with any other party not immediately concerned with the credit,” the Bankers Trust statement said.

Maritime Fruit, once Israel’s most successful privately owned shipping venture which specialized in the transportation of fruit and other perishables, reportedly was taken over last year by a consortium of American and British creditors. It was heavily in debt to various British shipbuilders for vessels completed or on order. It was noted at the time that Maritime Fruit would attempt to retain its Israel-flag ships or sell them to other Israeli owners in order to preserve jobs for Israeli seamen.

The Bankers Trust statement said that four of the five ships mentioned in the reported court action already have been sold at court supervised public auctions. It identified the successful bidders as Castle and Cooke, an American firm based at Honolulu. Hawaii; Compania SudAmerica de Valparaiso, a Chilean concern; and United Brands (formerly the United Fruit Co.) an American firm. The purchasers did not include the Swedish firm named in the reported Israeli court action, Bankers Trust said.