Ousted Alron Chair Threatens Legal Action Amid Controlling Shareholder Dispute
Ousted Alron chair Lisia Bachar-Manoach has threatened legal action against controlling partners over her dismissal, escalating a dispute sparked by an unpaid 90 million shekel loan from Phoenix Holdings.
The boardroom battle at Israeli investment firm Alron Ventures escalated sharply as recently ousted chair Lisia Bachar-Manoach threatened legal action through her attorneys, Omer Meiri and Alon Pomerantz from Lipa Meir & Co., according to a warning letter obtained by local media.
The conflict erupted after controlling shareholder Arieli EL—jointly owned by Bachar-Manoach, Euben Renov, and Ronen Bentov in equal shares—failed to meet the terms of a 90 million shekel loan secured in 2024 from Phoenix Holdings. Alron's share price has since plummeted by 48%, currently trading at a market capitalization of approximately 150 million shekels. Following the stock decline, Phoenix demanded loan repayment, exposing deep divisions among the partners on how to proceed.
Pressure and Boardroom Dismissal
In her legal warning, Bachar-Manoach alleges that her partners exerted relentless pressure on management and the board to raise 150 million shekels via bond offerings to distribute funds to shareholders. This maneuver was allegedly designed to enable them to settle their 90 million shekel debt to Phoenix Holdings, which is reportedly backed by personal guarantees.
While Alron never officially announced such a bond issuance for debt repayment, the company did disclose in June plans to invest in RDC, a joint venture with Rafael, exploring debt issuance as part of that strategy. According to the letter, professional staff and independent directors strongly opposed the move, and investor backlash ultimately blocked the initiative.
Bachar-Manoach claims her dismissal on Wednesday was orchestrated to neutralize corporate gatekeepers and allow Renov and Bentov to take control of the company for personal benefit rather than corporate interests. She argues that the board lacked a quorum of disinterested directors to vote on her removal and criticized the appointment of new directors just moments before the vote.
Alron and Arieli EL Response
Alron firmly rejected the allegations, stating that the claims are baseless and that the board operates strictly in the best interest of the company, its stakeholders, and shareholders.
Arieli EL acquired control of Alron from Discount Investment Corporation about two years ago for approximately 200 million shekels. Under Bachar-Manoach's leadership, Alron shifted its focus toward defense tech and cybersecurity, executing six exits and 20 new investments totaling 12 million dollars. With an extension granted by Phoenix Holdings to repay the debt expiring on Friday, October 30, the company faces significant uncertainty regarding its future ownership structure.
