Israel Treasury officials decided today to keep the “Nili,” the biggest ship in the debt-ridden Somerfin shipping company, in Miami until it is auctioned to meet some of the debts against Somerfin which have been guaranteed by the Israel Treasury.
The decision to bar the Nili, now docked in Miami with 300 passengers, from a scheduled Caribbean cruise, was taken after Treasury officials heard a report from the Treasury’s legal adviser, Elhanan Landau, who went to Miami to investigate the situation, and returned here for conferences with top Treasury officials.
The Nili is mortgaged to the Bank of Glasgow, Scotland. Its mortgage, which is in default, is guaranteed by the Israel Government, which has provided the Geneva-based firm with $18,000,000 in various forms of guarantees and collateral.
The company, which was founded and is operated by Meir Halevy, an Israeli citizen, was disclosed to be in difficulties about two weeks ago when Swiss creditors and banks asked for a court injunction to freeze Somerfin assets and to bar Halevy from the management, reportedly to protect their investments in Somerfin. Treasury officials said that the Israel Government would not lose any money on its guarantees if the Treasury was permitted to act as a “hard banker” without “sentimental considerations.”
Help ensure Jewish news remains accessible to all. Your donation to the Jewish Telegraphic Agency powers the trusted journalism that has connected Jewish communities worldwide for more than 100 years. With your help, JTA can continue to deliver vital news and insights. Donate today.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
