In the wake of Tel Aviv District Court Judge Varda Elshech's decision to approve the request of Agrexco for a stay of proceedings until Monday, the court appointed trustee Adv. Shlomo Nass has attacked the Ministry of Finance for failing the assist the company and said that it is causing a catastrophe. Agrexco, which exports fresh produce under the Carmel brand, has run up losses, deficits and debts of €106 million.
The Israeli government holds a 33% stake in Agrexco but Nass told farmers that the Ministry of Finance is "sticking its head in the sand."
During discussions with farmers, Nass spoke of his plan for a longer freezing of activities, which he will present to the court tomorrow. The cost of financing, as outlined by him, during the first stage of the stay of proceedings €8.5 million but he said that the Ministry of Finance was refusing to be a part of the plan. Tnuva Food Industries Ltd., which owns 11% of Agrexco, has agreed to finance its proportion of its holding in the company.
Nass said, "We have been given four days grace of a stay of proceedings by the court and if by the next court discussions the Ministry of Finance has not announced its agreement for a continued stay of proceedings then the company will go into liquidation. The employees will be fired, farmers will lose a lot of money and huge damage will be caused to Israeli agriculture and its reputation worldwide."
He added, "If by Monday there will be no possibility of operating the company in the coming months - it will be a catastrophe for everyone. It is unclear what will happen to the money of thousands of farmers who supply produce as well as the banks, suppliers and hundreds of employees."