Ousted Elron Chairwoman Accuses Partners of Pressure to Cover Personal Debts

Lisia Bachar-Menuchin, the recently ousted chairwoman of investment company Elron, has vowed to fight her dismissal, alleging that her partners, Evan Renoff and Ronen Bentov, exerted "heavy and relentless pressure" on the company's management and board. The dispute stems from a NIS 90 million loan taken by Elron's controlling shareholder, Arieli EL, from Psagot Investment House in 2024. Following a 48% drop in Elron's stock, which now trades at a market value of approximately NIS 150 million, Psagot demanded repayment.

Bachar-Menuchin claims in a warning letter that Renoff and Bentov pushed for a NIS 150 million bond issuance to distribute funds to shareholders, enabling them to repay their personal guarantees on the Psagot loan. She asserts that company professionals opposed this plan, and potential investors expressed dissatisfaction, with the plan being halted partly due to the company's independent directors. The letter also alleges that Renoff and Bentov attempted to prevent information about the loan situation from being presented and disclosed publicly.

The conflict has escalated to personal accusations, with Bachar-Menuchin reportedly accusing Renoff and Bentov of threats against her and her family. She argues that their actions "crossed red lines" and that the board's decision to oust her was invalid, as Renoff and Bentov were in a conflict of interest. She further contends that their attempt to appoint two new directors just before the vote on her dismissal was a maneuver to gain control of the company's management for personal benefit.

According to her lawyers, the appointment of new directors who then voted on her dismissal, without sufficient prior information or discussion, was unprofessional and potentially malicious. The sole independent director who voted against her dismissal, Barak Meshki, is cited as evidence of the board's improper conduct. The situation is compounded by an upcoming October 30 deadline for Arieli EL to repay its debt to Psagot, with a significant risk that Elron's shares could be sold, transferring control of the company.

Elron, in response, dismissed Bachar-Menuchin's claims as "baseless," stating that the company's board acts in the best interest of the company and all its stakeholders. Arieli EL, a New York-based Jewish family with Wall Street connections, acquired control of Elron approximately two years ago for about NIS 200 million. Since Bachar-Menuchin took over as chairwoman, Elron has shifted its focus to defense-tech and cyber, divesting six holdings and making 20 new investments totaling $12 million.