Zim $4.5 billion bidder faces foreclosure on his home
Haim Sakal’s ambitious shipping offer contrasts with NIS 15 million debt proceedings.
A few weeks after Haim Sakal submitted a surprising offer to purchase Zim for $4.5 billion, it has emerged that a house he owns in Herzliya Pituach has been placed under receivership due to a debt of approximately NIS 15 million. At the beginning of May, a surprising letter was sent to Zim’s board of directors containing a purchase proposal submitted by businessman Haim Sakal. The offer, which was higher than that of Hapag-Lloyd, was sent to the chairman of Zim’s board, Yair Seroussi. However, the board did not discuss it, mainly because it had no legal option to do so, as the company had already signed an agreement to sell itself to Germany’s Hapag-Lloyd and the FIMI fund for $4.2 billion.
Sakal, whose family previously operated duty-free shops at Ben Gurion Airport through the Sakal Group, did not specify the financing sources for his proposal. According to previous publications, additional investors were expected to join him. “The State of Israel is my guiding light and must be protected,” Sakal was quoted as saying at the time. A day earlier, it was also reported that Sakal intended to acquire Arkia Airlines, though here too no financing details were provided. Now, questions are being raised about whether he has access to such financial resources.
About two weeks ago, the Haifa District Court appointed a receiver for a house owned by Sakal on Wingate Street in Herzliya Pituach, following a debt of approximately NIS 15 million to the financing company Extra Credit, controlled by Moti Ben-Moshe. The move means that if the debt is not settled, the process is expected to proceed to enforcement proceedings.
Sakal and his wife Michal own two adjoining houses on Wingate Street, on the beachfront in Herzliya Pituach. One of the properties has a mortgage registered for NIS 12.6 million, according to the Land Registry. The mortgage is held in favor of Sea & Shells Marketing. The value of each house is estimated at approximately NIS 18 million, according to an appraisal. The family lives in one of the homes, while the other is used by Sakal’s elderly parents. Each property is approximately 400 square meters in size.
The second house also has a mortgage, although its exact amount is not specified in the land registry. According to sources familiar with the matter, it is a loan of approximately NIS 11 million from the non-bank credit company S.R. Accord, controlled by Adi Zim.
Extra Credit went to court after Sakal fell behind on repayments, and the court appointed attorney Eyal Shani as receiver. On June 7, a foreclosure order was also issued against the property.
As far as is known, Sakal is holding quiet negotiations with Extra Credit in an attempt to settle the debt. As part of the talks, he is offering to repay about NIS 13 million and receive a waiver on part of the interest, including late-payment interest.
According to sources involved in the negotiations, Sakal claims he is expected to receive a significant commission from a mining deal in Africa, which would enable him to repay the debt. Sakal’s response: “The report contains inaccuracies. The family has always stood behind its companies and all their commitments.”
Haim Sakal is the son of Solly Sakal, who, together with his brother, founded the Sakal Group. The group operated retail chains in fashion, sports, and electronics, and also ran duty-free operations at Ben Gurion Airport. In 2005, the group collapsed into crisis, though over the years it repaid hundreds of millions of shekels in bank debts.
In 2018, the Sakal family sold its duty-free operations, concentrated in Layam, to Teddy Sagi for NIS 8 million in cash and an additional NIS 30 million in bank debt. The deal was accompanied by tensions, and last November Sakal filed a lawsuit against Sagi, claiming he was left with a balance of NIS 2 million in Layam debt for which he was a guarantor. Sagi rejected the claims.
Sakal’s duty-free activities included shops at Ben Gurion Airport and Israeli ports, a duty-free store for diplomats in Tel Aviv, and outlets on passenger ships. Layam also supplied goods to ships in ports and duty-free products to airlines, UN forces, and NATO. Sakal was among the first to bring brands such as Tommy Hilfiger, Ralph Lauren, Nautica, and Donna Karan to Israel. Following financial difficulties about a decade ago, the group was forced to sell its franchises to Roni Irani’s Factory 54 group, the Brill Group, and others.
