Nazareth District Court Judge Hashim Khatib yesterday issued an ex parte 60-day stay of proceedings for armored car and firefighting equipment maker Hatehof Ltd. (TASE:THF) and its controlling shareholder, at the request of Israel Discount Bank (TASE: DSCT) and Union Bank of Israel (TASE: UNON). The judge also appointed Aliza Sharon CPA as trustee of the company and as its controlling shareholder during the stay of proceedings, in order to formulate a debt settlement.
Hatehof's bondholders and employees have both threatened to petition the courts to liquidate the company. The banks opted not to take this step, choosing a stay of proceedings instead in an attempt to save the company.
Sharon will be responsible for negotiations and recovery measures at Hatehof. She is due to petition the court today for an immediate payment of salaries to employees who have not been paid for two months. Talks are also continuing to find an investor for the company.
Hatehof's share price fell 12.9% in morning trading today to NIS 0.54, giving a market cap of NIS 31 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 27, 2010
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