Insurance and reinsurance broking giant Aon has expanded its attempt to freeze the assets of beleaguered insurtech Vesttoo, with a fresh appeal to a court in Tel Aviv via its White Rock Insurance (SAC) Ltd. company, it has now been reported.
Israeli tech publisher Calcalist has stated that Aon’s White Rock SAC segregated account and transformer company has petitioned the Tel Aviv District Court today, ir order to freeze Vesttoo’s assets in banks, insurance companies, or investment firms located in Israel.
That temporary restraining order secured in the New York court seeks to enjoin (prevent) Vesttoo from moving or disposing of assets in its bank accounts, except $1,000,000 in funds that can be used “to pay Vesttoo’s employees, taxes, and existing subcontractors and suppliers essential to Vesttoo’s ordinary course operations.”
Calcalist reported today that the request to the Tel Aviv court seeks to freeze Vesttoo’s assets in Israel up to an amount of NIS 500 million (roughly US $135 million).
Vesttoo has released a statement to Calcalist, seemingly at the end of last week, that is reported to have said, “The freezing of the company’s assets in New York is only temporary, pending a hearing with both parties in court scheduled for next Tuesday.
“According to the assessment of the company’s lawyers, the U.S. court lacks jurisdiction to address procedures related to other territories.
“Vesttoo intends to utilize all available legal means to eliminate the obstacles that are impeding the company’s ongoing efforts for recovery and growth.
“It’s important to note that there is no concern about the company’s ability to meet its obligations to employees and suppliers.”
As we reported this morning, Aon, via its White Rock SAC vehicle and through the New York court, is seeking a $136.7 million return of collateral that had been distributed to Vesttoo, after purportedly fake letters of credit (LOCs) were said to have been submitted to replace it.