The question of who owns the Jerusalem Post apparently was not settled when CanWest Global Communications and Mirkaei Tikshoret Ltd. signed a letter of intent to buy the former Hollinger International property for $13.2 million last year. Eli Azur, the chairman and CEO of Mirkaei Tikshoret, an Israeli publishing company, has filed court papers against CanWest in both New York and Jerusalem alleging that because CanWest managed to obtain a temporary restraining order against him, he has suffered enormous public damage. The restraining order was asked for as part of CanWest’s request for arbitration in the matter.

Mr. Azur alleged that his professional reputation has been tarnished and doubts raised about his status as a shareholder of the Jerusalem Post after details of CanWest’s requests surfaced in the court filings. Moreover, according to Globes Online, an Israeli financial news Web site, Mr. Azur alleged that it has been difficult for him to raise money to keep the Jerusalem Post going given these charges.

Mr. Azur was unable to be reached and a CanWest spokesman did not return a call seeking comment. In a press release announcing the proceedings, “It is regrettable that MTL has chosen not to honor the terms of its agreements with CanWest.”

The negotiations between CanWest and Mr. Azur and his company seem to have been star-crossed from the start, according to Mr. Azur’s filing. After signing an initial letter of intent in June of last year to jointly purchase the shares from Hollinger, which was reeling after charges of embezzlement were leveled against its former management [Hollinger is a minority investor in The New York Sun.] When this arrangement fell apart for unnamed reasons, Mr. Azur said that he alone made the purchase of the paper, although his company continued negotiations with CanWest. A report from the Israeli paper Haaretz said that one object of contention was the so-called “right-wing” editorial positions advocated by CanWest, especially its president and CEO, Leonard Asper. The Haaretz report also said that the two sides fought over personnel issues, especially the question of who would be the next editor-in-chief, with CanWest allegedly seeking to bring in an editor from England.

To obtain the $13.2 million to pay for the paper, Mirkaei Tikshoret obtained a loan from Bank Leumi personally guaranteed by Mr. Azur, according to the court papers. As a result of this, Mr. Azur is seeking a court in Jerusalem to declare him the sole owner of the paper.

In arbitration proceeding filed late last month in New York, CanWest asked for 50% of the Jerusalem Post’s shares.

The Jerusalem Post, the smallest of what had been Hollinger’s three broadsheet newspapers – the other two were the Chicago Sun-Times and The Daily Telegraph of London – had long been a money loser for the company. Estimates put its annual loss at about $15 million since 2000.