Tel Aviv District Court Judge Eitan Orenstin today appointed Yoav Kfir CPA as the receiver of Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR). Kfir will submit his first report to the court in three days.
"I considered the creditors' motion to appoint a temporary liquidator in addition to the receiver," said Judge Orenstin. "I believe that, at this time, at the start of the insolvency process, and when a critical need for the appointment of a liquidator has not been presented, there is no reason to appoint another officer. However, if the creditors believe later on that there is a need to appoint a temporary liquidator, the way is open for them to return and petition the court on the matter. That being the case, a ruling is hereby given that responds to the claim and orders the enforcement of the liens and the appointment of a permanent receiver."
Alvarion's lawyer said that the company has three main creditors: it owes $6 million to a Philippine company; $3 million to RH Technologies Ltd. (TASE: RHTCH); and $2.8 million to Flextronics International Ltd. (Nasdaq: FLEX). He estimated other debts at $4.5 million.
Alvarion also owes money to Bank Hapoalim (TASE: POLI) for the exercise of $1 million bank guarantees, and it owes $3.3 million to Silicon Valley Bank. Although June salaries and income taxes have been paid in full, the company has not made the employer provisions for provident funds. Its total debts, excluding what is owed employees, is $20-21 million.
Alvarion's lawyer also said that the company is owed $5.8 million from three main debtors and other customers. "About $10 million in working capital will enable the company to stay in business, and there are parties which want to buy the company's products," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013