Loans taken by the company for the purpose of paying the usage fees to the municipality
- The company demanded compensation for the loan it took out in the sum of ILS 3,292,690. This includes a sum of ILS 1,792,690 for the interest it paid, as well as a sum of ILS 1,500,000 "fine" which it claimed it was required to pay for extending the validity of the loan.
- As to the demand for payment of interest, the company petitioned to charge the municipality with an additional interest differential of 5%. According to the company, in order to pay the usage fees to the municipality, on April 1,2016, it took an owner's loan from one of its shareholders - plaintiff 3, B. D. I. Development and Investments Ltd. (hereinafter: "B. D. I. I. ") - in the amount of ILS 5 million, at an annual interest rate of 5% per annum (see paragraph 8 of the affidavit of Bnei David; the loan agreement - P/7).
According to her, the interest rate from the date of payment until the date of restitution, to which the company undertook vis-à-vis plaintiff 3, is in the sum of ILS 1.5 million, and together with the linkage of this amount, she claimed compensation at the rate of ILS 1,792,690. (See paragraph 75 of the affidavit Wechter)
See also CPA Sitton's calculation regarding the interest rate to be borne in this regard:
(Clause 4): "The loan was taken on April 2,2016 and the calculation was made until the date of filing the claim by V Equity, i.e. July 14,2022. According to the interest rate I have calculated, the interest rate is at the rate of 5% per annum, the amount of interest to be paid by the date of filing the claim is ILS 1,792,690, with the calculation presented in the appendix to the opinion."
- As stated, in this regard, the company claimed that in view of the municipality's conduct, it suffered damages in the form of the payment of contractual interest on the loan money it took for the purpose of financing its winning the tender, and therefore petitioned to charge the municipality with this contractual interest differences.
However, given the risk that the company calculated in advance when it entered into an agreement with the municipality and its knowledge that there is a risk that the agreement will not be approved at the end of the day, I do not see fit to charge the municipality this agreed interest that the company took. The company's choice to agree to these financing terms or any other financing terms is at its sole risk.