JERUSALEM, Jan 15 (Reuters) - Eurocom Group, the parent company of Bezeq Israeli Telecom, has petitioned a Tel Aviv court to allow a debt settlement that would bring it a new controlling shareholder, a Eurocom subsidiary said on Monday.
Eurocoms chairman, Shaul Elovitch, who is being investigated by Israeli authorities for possible fraud and financial reporting offenses, is under pressure to sell Eurocom, which is laden with nearly 1 billion shekels ($294 million) in debt. Elovitch has denied any wrongdoing.
Under the proposal, a group led by U.S.-Israeli businessman Naty Saidoff would bring a "significant and rapid capital flow" to Eurocom to settle some of its debts, another Eurocom subsidiary, Enlight Energy, said in a statement.
In return Saidoff's group will get conversion rights that at a later stage will give them control of up to 90 percent of Eurocom shares. The statement did not disclose financial details.
If the court gives a green light and the debtholders agree, control of Eurocom would only be transferred after getting regulatory approval.
Israeli financial news websites have reported the proposal includes Saidoff injecting 400 million shekels into Eurocom and banks agreeing to forgive 400 million shekels of debt.
Eurocom officials were not available for comment.
Eurocoms holdings include a controlling 26 percent stake in Bezeq, Israels largest telecoms group, and satellite operator Spacecom.
Saidoff is a real estate mogul who founded California-based Capital Foresight. ($1 = 3.3979 shekels) (Reporting by Ari Rabinovitch Editing by Jeremy Gaunt.)