The observers will ensure the company acts in the interests of its creditors, especially concerning its holding in Bezeq

The dismantling of Shaul Elovitch’s pyramid has gone a stage further. Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) notified the Tel Aviv Stock Exchange today that Eurocom Communications (which indirectly controls Bezeq) had agreed to the appointment of observers on behalf of Eurocom Communications’ creditors to its board of directors, this without detracting from the board’s powers

This means that Eurocom Communications’ board will have to act with extra caution, so that, when the moment of truth arrives, Eurocom’s creditors will be able to seize its assets, the main one being its holding in Bezeq. The observers will be able to turn to the court at any time in order to halt any transaction that does not maximize the company’s value for the creditors

Eurocom’s consent to the appointment of observers is an attempt to reassure the creditors and blunt their application for the appointment of a liquidator to the Eurocom group