The Nazareth District Court yesterday approved the creditors settlement for Phoenicia America-Israel (Flat Glass) Ltd., which obtained a stay of proceedings in August, due to its NIS 320 million debt. Judge Attif Ailabouni approved the settlement, after Bank Hapoalim (TASE: POLI), Bank Leumi (TASE: LUMI), Israel Discount Bank (TASE: DSCT) and First International Bank of Israel (TASE: FTIN), the company's secured creditors, agreed to forego 15% of the company's debt, amounting to NIS 128 million.
Judge Ailabouni ruled, however, that the creditors agreement will only come into effect after the Antitrust Authority approves the sale of Phoenicia Flat Glass to Fortissimo Capital, and after the company's management submits to the court a collective contract with its employees.
Under the settlement, Phoenicia Flat Glass's suppliers, who are unsecured creditors, will receive just NIS 29 million of the NIS 95 million owed them. The company's parent, US glassmaker Guardian Industries Inc., will forego most of its NIS 27 million owner's loan, receiving just NIS 5 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 30, 2012
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