Several employees of Expand Networks Ltd. have petitioned the Haifa District Court to hold a hearing on the activity of the company's receiver, Adv. Paz Rimer. The employees contend that Rimer fired 24 employees last week and that he has not paid salaries for September. The court scheduled the hearing for tomorrow morning.
The Haifa District Court appointed Rimer as receiver tasked with keeping the company operating as a going concern in order to sell it. Plenus Venture Lending Fund petitioned the court to appoint a receiver after Expand Networks was unable to repay its $10 million debt.
Rimer is walking a thin line between operating an expense-heavy company with zero income, which usually means extensive layoffs, while keeping satisfied employees, because potential high-tech buyers are unenthusiastic about buying a company whose employees do not consent to the sale. The employees contend that Rimer fired 24 employees, despite a requirement to wait for the court hearing on the matter. The fired employees include CEO Elie Barr and VP human resources Anat Gafni.
Rimer said in response that the employees were paid their September salaries, and that the cost of keeping the fired employees was NIS 400,000 a month. He said that the firings "were essential" for Expand's operations. He added, "There is full confidence between the company's employees and the management team responsible for the current running of the company."
Published by Globes [online], Israel business news - www.globes-online.com - on November 1, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011