The Ministry of Justice today announced that the Official Receiver has opened a full investigation into the collapse of Agrexco and its executives. The receiver's investigation was initiated at the order of the Tel Aviv District Court on "the issue of possible involvement and responsibility of senior officeholders at Agrexco for the loss of value of the company and the damage to its creditors."
The receiver will also investigate how Agrexco used a NIS 55 million capital transfer from the government before its collapse, and the leases of ships which caused the company substantial losses.
On the eve of the Sukkot holiday two weeks ago, the receiver seized Agrexco's computer databases and documents, correspondence, and records.
The investigation began following a decision in July by Tel Aviv District Court vice president Judge Varda Alshech that an investigation into the collapse of Agrexco was essential. She ruled that it was necessary to examine how the company managed its finances, the quality of its decisions, appointments, and how prior investment into the company disappeared. She said that Agrexco's internal records were astonishing, suspicious, and possibly even worse.
In early October, Judge Alsech ruled that Agrexco would be sold as a going concern to Bickel Group Export and Trade Ltd. and Chen Lamdan-controlled Orian SM Ltd. (TASE:ORIN).
Published by Globes [online], Israel business news - www.globes-online.com - on October 27, 2011
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