US Businessman Michael Kohan Fights to Reclaim Company Shares
Translated & summarized from Calcalist by baba
American businessman Michael Kohan is suing to recover shares of his company, Kohan Properties, after they were sold for $6.4 million following a missed $4 million loan payment. Kohan claims his bank blocked his repayment transfer, leading Israeli businessman Natanel Lorenz to seize and sell the shares. Kohan is prepared to pay the full amount to get his company back, which holds $736 million in assets, and is seeking a court order to halt further share transfers.
The story in 5 lines · by baba
- Michael Kohan is suing to reclaim shares of his company, Kohan Properties, after a $4 million loan default.
- Kohan claims his bank blocked his repayment wire transfer, leading to the seizure and sale of his shares.
- Israeli businessman Natanel Lorenz seized the shares and sold them for $6.4 million to Amos Luzon and Oren Halfon.
- Kohan Properties holds 35 commercial properties in the US valued at approximately $736 million.
- Kohan is prepared to pay the full amount to recover his shares and is seeking a court order to prevent further transfers.
American businessman Michael Kohan is initiating legal proceedings in the British Virgin Islands to reclaim shares of his company, Kohan Properties, which he claims were unfairly seized. Kohan Properties holds 35 commercial properties in 19 US states valued at approximately $736 million. Kohan stated in an interview that he intended to repay a loan of around $4 million to Natanel Lorenz, an Israeli businessman residing in the UK, but his wire transfer was allegedly blocked by his bank. Lorenz subsequently exercised his lien on Kohan's shares in Kohan Properties and sold them a week later to Amos Luzon's Luzon Enterprises and Oren Halfon for $6.4 million.
Kohan asserts that he had the funds to repay Lorenz or Luzon to get the shares back and is prepared to pay either the $4 million or $6.4 million to recover them. He argues that seizing assets worth hundreds of millions for a $4 million debt is unreasonable. Kohan claims he was in a hurry to make a payment to someone else and signed the loan documents without legal counsel, leading to the collateralization of his entire company.
Kohan Properties' bonds are traded with a gross annual yield of 10.9%, and eight of its properties, valued at $213 million, are pledged to bondholders. Kohan's legal team has sent a letter indicating their intention to challenge the lien enforcement by Lorenz and the subsequent sale to Luzon and Halfon. They have also requested a court order to prevent Luzon and Halfon from further transferring the shares.
The Luzon group, however, has received a legal opinion from the British Virgin Islands stating that Lorenz's company has the right to transfer the shares free of any encumbrance. Kohan remains confident that he will regain possession of his shares, stating, "We will stop the further transfer of shares and I believe I will get them back."
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