Liquidators to operate Better Place

The electric car venture will be operated on a limited basis, and most employees will be fired.

The Central District Court today decided that Better Place will be operated by its liquidators, who will prepare a full situation report on the company and its units. Better Place will be operated on a limited basis, and most of its employees will be fired. The court did not decide for how long the company will be operated.

Yesterday, Adv. Sigal Rosen-Rechav and Adv. Shaul Kotler were appointed liquidators for Better Place.

Judge Eitan Orenstin said, "There is no dispute that continued operation of the company will be at a loss, since as a rule operations should not be continued, except under special circumstances. It seems to me that these circumstances exist in the case before us, at least for the briefest period, to allow for the receipt of a full report on the companies' situation, the continued operation of the cars delivered to customers, and to examine options for the sale of assets or company or companies, while the company is active, which can be assumed will maximize the proceeds from a sale."

Orenstin accepted Rozen-Rechav's request to immediately fire some of Better Place's employees, saying, "There will be room to immediately substantially reduce the number of employees, and of course the necessary activities." He added that the layoffs would be made in consultation with the employees' representatives, and after the position of the Official Receiver is obtained.

As for Better Place's customers who bought or possess its electric cars, Orenstin ruled, "Continued operation of the cars throughout the country should improve the companies' value, and the liquidator will do this at least through the immediate period, until the next session."

Orenstin also ruled that, for the operation of the electric cars, Manpower Israel would continue to provide drivers and operators of the battery recharging and replacement stations, and keep the employees who provide services for Better Place until the end of the company's operation.

Published by Globes [online], Israel business news - - on May 28, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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