The Tel Aviv Stock Exchange halted trading in shares of Vita-Galilee Fruit Ltd. (Vita-Pri Galil) (TASE: VITA), citing lack of clarity after a meeting between the company and its creditors was cancelled. Vita responded that it is unaware of any further developments, and requested information from the court-appointed special managers.
Bank Leumi (TASE: LUMI) has disclosed the results of this morning's meeting between chairman Eitan Raff, Histadrut chairman Ofer Eini, and representatives of Israel Discount Bank (TASE: DSCT) chairman Shlomo Zohar and Vita-Galilee Fruit, which discussed yesterday's offer by Zaki Shalom and Zvi Kuperly, the owners of independent supermarket chain Kol Bo Hazi Hinam Ltd., for the company.
The bankers told Vita's court-appointed special managers that Hazi Hinam's offer of NIS 105 million was the only offer left on the table for the company. For this reason, the banks cancelled today's scheduled creditors meeting.
The banks undertook to cover the financial liabilities for Vita's labor contracts and severance packages. The banks added that the buyers said that they will continue to employ Vita's workers under their current contracts.
Shalom and Kuperly told "Globes" yesterday, "We'll hire Vita's 400 temporary workers as permanent employees, and we'll improve everybody's salary terms. We were chilled to see them standing in the cold."
Published by Globes [online], Israel business news - www.globes-online.com - on March 4, 2009
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