Founder Fights Takeover of His Commercial Property Firm
Translated & summarized from Globes by baba
Kohan Properties founder Mike Kohan is attempting to regain control of his company after it was acquired by the Luzon Group less than a week prior. Kohan lost control after improperly withdrawing company funds and defaulting on a loan secured by his shares. The Luzon Group asserts its legal right to the company, while Kohan plans to challenge the ownership transfer. Kohan Properties owns 35 commercial centers in the US valued at $710 million.
The story in 6 lines · by baba
- Mike Kohan is challenging the Luzon Group's takeover of Kohan Properties, a company he founded.
- Kohan lost control after withdrawing millions from the company and defaulting on a loan.
- The Luzon Group claims a legal opinion supports its ownership of the company.
- Businessman Natanel Lorenzi initially seized control due to Kohan's defaulted loan.
- Lorenzi sold the company to the Luzon Group and Alpha Fencing for $6.3 million.
- Kohan Properties owns 35 US commercial centers valued at $710 million.
Less than a week after control of the US-based commercial property company Kohan Properties shifted to the Luzon Group, founder Mike Kohan is attempting to regain control. Kohan lost his grip on the company he founded after he improperly withdrew millions of dollars from its accounts to repay private loans. His representatives have sent a letter to the Luzon Group stating his intention to challenge the transactions through which the company's ownership was transferred. Kohan is currently requesting that no further actions be taken within the company.
The Luzon Group, however, claims to possess a legal opinion from attorneys in the British Virgin Islands, where Kohan Properties was incorporated for its Tel Aviv bond offering, which supports their rights to the company. The situation escalated earlier this month when businessman Natanel Lorenzi, who had provided Mike Kohan with a $4.6 million loan secured by all the company's shares, took control. A week later, Lorenzi sold Kohan Properties' shares to the Luzon Group and Alpha Fencing, controlled by market figure Oren Halfon, for $6.3 million.
Earlier, about two months prior, Kohan had illegally withdrawn millions of dollars from the public company's coffers to settle other private business debts. This led him to approach Lorenzi in August, who provided a loan to repay Kohan Properties' funds. This loan proved costly, as Lorenzi decided to exercise his collateral and seize control of the company.
Kohan Properties, incorporated in the British Virgin Islands for its offering, currently owns approximately 35 commercial centers across 19 US states, valued at about $710 million. Of these, 8 properties worth about $213 million are pledged to bondholders. Meanwhile, earlier this week, the shareholders of the Luzon Group, active in real estate and infrastructure, approved the annual salary of its controlling shareholder and CEO, Amos Luzon, which could reach up to 6.1 million shekels, compared to 3.1 million shekels last year. This follows Luzon's assumption of the role of chairman of the subsidiary Luzan Ronson and the Dorad power station, in which the group holds an interest.
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