Agrexco to cut 90% of debt to creditors

The company owes €30 million to ordinary creditors and tens of millions of euros to the banks, employees and local authorities.

Government controlled agriculture produce exporter Agrexco is proposing to pay creditors just 10-15% of its debts. The company owes Israel's five big banks tens of millions of euros, millions of euros to employees and local authorities, and €30 million to ordinary creditors.

The state owns 30.3% of Agrexco and has a majority of its directors, Tnuva Food Industries Ltd. owns 11%, and the Israeli Farmers Federation and other agricultural associations own 58.7%.

At 6:30 pm tomorrow, Agrexco's unsecured creditors will meet at the Dan Panorama Hotel in Tel Aviv to vote on the proposed draft settlement.

It is not yet known if Kislev Forwarding and Customs Clearing Ltd., the lead bidder for the company, will go ahead with the acquisition. Kislev, owned by Zvi Grinberg, has offered buy Agrexco for NIS 90 million: NIS 35 million in seven installments, plus up to NIS 55 million from future profits. It has also offered to keep 150 of Agrexco's employees

In late June, Tel Aviv District Court Judge Varda Alshech issued a stay of proceedings against Agrexco and appointed Shlomo Nass as trustee.

Published by Globes [online], Israel business news - - on August 24, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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