ValuBase Sues BVI Company Ia New York Over Unpaid Bond Issuance Fees
Translated & summarized from Globes by baba
ValuBase has sued Ia New York and its owner Amir Shariki for allegedly failing to pay 11 million shekels in bond issuance fees. Ia New York disputes the claims and demands compensation for damages. The dispute follows a 295 million shekel bond issuance backed by Manhattan real estate assets.
The story in 6 lines · by baba
- ValuBase sues Ia New York and Amir Shariki for unpaid underwriting fees totaling about 11 million shekels.
- Ia New York disputes the amount owed, claiming only 5.3 million shekels were due and ValuBase refused payment.
- Ia New York demands compensation for damages caused by ValuBase's actions.
- The lawsuit concerns fees from a bond issuance of 295 million shekels with 7.7% annual interest.
- Ia New York owns five Manhattan real estate assets valued at 272 million dollars, used as collateral.
- The case is filed in the Tel Aviv District Court and involves contractual disputes over fee payments.
Six months after leading the bond issuance of Ia New York, investment bank ValuBase has filed a lawsuit against the BVI-registered company and its controlling owner, Amir Shariki, alleging failure to pay agreed underwriting fees. The lawsuit, submitted to the Tel Aviv District Court, claims Ia New York breached its payment obligations for advisory and distribution services related to the issuance of Series A bonds earlier this year. ValuBase, managed by Ido Neuberger, demands approximately 11 million shekels, including 8 million shekels in unpaid underwriting fees, 2.5 million shekels for damages including reputational harm, and 500,000 shekels for unjust enrichment.
Ia New York has rejected these claims, stating that the fees owed to ValuBase total about 5.3 million shekels, which they attempted to transfer through the issuance coordinator upon completion, but ValuBase refused to accept. Ia New York further argues that additional fees claimed by ValuBase are contingent success fees payable at the company's sole discretion and that fees for bonds purchased by the controlling shareholder or not distributed by ValuBase are not owed. Michael Vaknin of MOi law firm, representing Ia New York, criticized ValuBase's actions as an unprecedented and unreasonable pressure campaign harming Ia New York's reputation among investors.
Earlier this year, Ia New York raised 295 million shekels through a bond issuance with a 7.7% annual interest rate. The company, controlled by Israeli businessman Amir Shariki and incorporated in the British Virgin Islands, holds five income-producing real estate assets in Manhattan valued at approximately 272 million dollars, with Ia New York's share at about 156 million dollars. Two of these properties, including the Riverside project with 233 rental units at 94% occupancy and the Renoir residential property with 151 units at similar occupancy, were pledged as collateral for the bond issuance.
ValuBase's lawsuit highlights tensions in the real estate investment and underwriting sectors, with the dispute focusing on contractual interpretations of fee payments and the handling of bond issuance proceeds. The case is ongoing in the Tel Aviv District Court.
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