55 years after its establishment by the State of Israel and its farmers, Agrexco requested a 60 day stay of proceedings from the Tel Aviv District Court. The court is expected to appoint Adv. Shlomo Nass CPA as trustee.
The company, which exports fresh fruit and vegetable produce under the Carmel brand, has debts of €106 million including €35.2 million to Israeli banks, €6 million to foreign banks, €27.3 million to bondholders, €2.1 million to employees and local authorities, and €58 million to uninsured creditors including suppliers and customers.
Earlier today the Histadrut (General Federation of Labor in Israel) and Agrexco employees said they were outraged that management of the government controlled agricultural exporting company did not consult with them over the planned stay of proceedings for the company. They claim that they read in the newspapers that Shlomo Nass was to be been appointed trustee of the company. Agrexco employees demonstrated outside Agrexco's offices on Hahashmonaim Street in Tel Aviv, and blocked traffic for a while.
The workers committee claims that yesterday's meeting with management broke up when the workers committee realized that management was planning unilateral action. The workers committee and the Histadrut want an active role in the arrangements for a stay of proceedings, which is aimed at creating a recovery plan for the company. They also want to ensure that scores of longstanding employees receive better retirement terms than the terms stipulated in the current collective labor contract, ahead of expected layoffs.
Published by Globes [online], Israel business news - www.globes-online.com - on June 30, 2011
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