Africa-Israel Investments Ltd. (TASE:AFIL) today filed a request with the Petah Tikva District Court to liquidate subsidiary Tadiran Telecom Ltd. The request came two days after "Globes" reported that Africa-Israel had reached a deal for the sale of Tadiran Telecom to its employees and a group of investors headed by Moshe Cohen.
Africa-Israel filed the request for liquidation after the sale negotiations broke down, because Tadiran Telecom's 130 employees had not been paid their salaries for May, which is a criminal breach of the law.
Tadiran Telecom's employees were due to receive 49.5% of the company in exchange for reduced compensation for which they would have been eligible in the event that they were fired, a figure that currently amounts to $21 million.
Tadiran Telecom manufactures telephones for enterprises, but suffers from severe technological lag compared with its competitors, which have switched to more advanced technologies.
The Histadrut (General Federation of Labor in Israel) said in response that it would take the necessary measures to protect the employees' rights.
Published by Globes [online], Israel business news - www.globes-online.com - on June 16, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010