Vita-Galilee Fruit Ltd. (Vita-Pri Galil) (TASE: VITA) today notified the Tel Aviv Stock Exchange (TASE) that it has received a sharply worded letter from shareholder and supplier Rich Products Corporation, which owns 9.5% of the company.
Rich is also a major supplier of good sold by Vita.
Rich stated that because Vita had not responded to its claims regarding a $1.4 million debt by end of January, Rich was cancelling its contract. Vita added that this will have "a significant effect on the company, which cannot yet be estimated."
In January, the Haifa District Court dismissed the request to put Vita into receivership. The judge gave the company 21 days to reach a settlement with the banks. The company, its shareholders, credits, and the banks have been meeting in an attempt to reach a voluntary settlement.
Published by Globes [online], Israel business news - www.globes-online.com - on February 10, 2009
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