Ahead of the creditors meeting for Vita-Galilee Fruit Ltd. (Vita-Pri Galil) (TASE: VITA)and Thursday's hearing in the Haifa District Court, the Yodfat Group and some of the controlling shareholders including Avraham Burg, submitted an improved offer to creditors.
Creditors arrangements now being proposed, include giving the factory NIS 17 million immediately, and an additional NIS 12.2 million will be deposited with a trustee, to be determined by Vita's employees. This sum will serve as a safety net for the employees. The Yodfat Group has also promised the workers not to impose layoffs and to respect all collective arrangements and agreements reached in the past.
To the banks the shareholders have proposed repaying 100% of debts over 20 years, while leaving all guarantees and liens in the hands of the banks. Vita's shareholders have asked for a year's grace in repayments in order to restructure the factory.
In addition, the owners have proposed a window of six to twelve months, (if both sides agree), at the start of the arrangement during which the banks ask for the company to realize the company's real estate assets to receive cash and lower Vita's debt.
As part of this offer, the government's guarantee of NIS 10 million will remain in the hands of the banks.
Yodfat Group was founded by the Yodfat Agricultural Cooperative Society Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2009
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