Arieli Partners Clash as Elron Debt Settlement Deal Faces Delays
A severe partnership dispute within Arieli has delayed its debt settlement with Phoenix Investment House over Elron shares. Partners secured a 20 million shekel injection to win a one-month extension.
A bitter partnership dispute among the three equal owners of Arieli, the controlling shareholder of the technology investment firm Elron, has delayed a crucial debt settlement agreement with Phoenix Investment House. The deal was originally scheduled to be finalized yesterday.
Acquisition and Loan Default
In September 2024, Arieli acquired a 58.4% controlling stake in Elron from Discount Investment Corporation for $53 million. To finance the purchase, Arieli secured a 90 million shekel loan from Phoenix Investment House, pledging its controlling shares in Elron as collateral. Elron is traded on the Tel Aviv Stock Exchange at a valuation of 202 million shekels.
At the time of the acquisition, the value of the shares was double the loan amount. However, Elron's stock began to decline, dropping 34% since the beginning of the year. Phoenix Investment House demanded that Arieli repay the loan or inject capital to reduce Elron's loan-to-value (LTV) ratio to meet required covenants. After months of failed refinancing promises, Phoenix began offering the pledged shares to institutional and private investors at a discount on the debt.
Partner Conflict and Police Complaints
According to sources, Arieli partners Arik Bentov and Evan Renov fell out with their third partner, Lisi Bechar Manoch, who also serves as Elron Chair. Bentov and Renov accused her of obstructing the proposed settlement with Phoenix and attempting to orchestrate a cheap sale of the pledged shares to an affiliated investor to push them out.
Tensions escalated when Bentov and Renov visited Bechar Manoch's home. Bechar Manoch alleged that an individual associated with them threatened her husband, prompting her to file a police complaint against her partners in an extraordinary move. Bechar Manoch has reportedly not withdrawn the complaint, maintaining that she and her family were threatened.
«Bentov and Renov view Bechar Manoch's actions as a betrayal after they appointed her as chair and granted her a partnership in the controlling stake.»
Capital Injection and Extension
Despite the turmoil, Bentov and Renov managed to secure a 20 million shekel loan and injected the funds into Phoenix. Consequently, an agreement was set to be signed yesterday, granting Arieli a one-month extension to repay the remaining loan balance while improving the LTV ratio to comply with covenants.
Arieli Capital is an American family office managing funds for religious and ultra-Orthodox Jewish investors from the New York area, specializing in technology and healthcare investments. Founded in 2016 by Bentov and Renov, the firm brought in investment manager Bechar Manoch for the Elron acquisition deal. Elron operates as a publicly traded venture capital fund holding stakes in 19 cyber, B2B software, and medical device companies. All involved parties declined to comment.
