Elbit Imaging Ltd (EMITF)

[midastouch017]

Elbit Imaging Announces Update Regarding the Ruling of the International Court of Arbitration in Relation to Its Subsidiary, Plaza Centers

TEL AVIV, Israel, Dec. 06, 2016 (GLOBE NEWSWIRE) -- Elbit Imaging Ltd. (“EI” or the “Company”) (EMITF) (EMITF) announced today, further to the announcement dated July 7, 2016, regarding the ruling of the International Court of Arbitration in which Plaza Centers N.V. ("Plaza") (PLAZ.L), an indirect subsidiary of the Company, was found liable for an indemnification claim in favor of Klepierre S.A. (“Klepierre”), the following:

Due to the guarantee of EI to the original transaction and according to Dutch law, EI is obliged to pay the amount determined by the International Court of Arbitration.
The Company and Klepierre reached a settlement in which, inter alia, EI shall pay Euro 1.2 million to Klepierre and Klepierre shall release all of its claims against EI, its fully owned subsidiary, Elbit Ultrasound (Luxembourg) B.V./S.À.R.L. (who was also a guarantor to Plaza) and Plaza.
In addition, Plaza paid to Klepierre the costs arising from the legal process in the amount of approximately Euro 0.6 million.