The Tel Aviv district court today issued a 60-day order for relief against legal proceedings against Solan Communications and Computers, part of the Solan Communications group owned by Yaakov Solan.
Justice Miriam Porat nominated Adv. Dov Fischler as temporary trustee to execute the company’s credit arrangement. Fischler’s responsibilities during this period will be limited to selecting a financial advisor to the company, who will manage all company business and oversee all creditor claims filed with Solan for the purposes of participating in a vote at the creditors meeting.
Justice Porat determined that the order for relief would also serve to prevent Pele-phone and Bezeq from disconnecting any telephone lines owned by Solan Communications and Computers, as part of debts accrued as of January 31, 1997.
In a court appeal, by consent of Mercantile Discount Bank (which is owed NIS 2.33 million), Bank Hapoalim (NIS 2.72 million) and Pele-phone, Solan Communications and Computers claims it had incurred NIS 8.8 million in debts.
Among the reasons given were losses caused by the acquisition of Solan Telecom and Solan Teletel. The companies were purchased by Solan Communications and Computers in order to win the telephone management and logging portion of the IDF airport tender. Solan Communications and Computers maintains it was obliged to inject NIS 1.75 million to cover past debts and losses, which were discovered only after the acquisition had taken place. Solan Communications and Computers estimates the damage caused as a result of acquiring the companies at over $1 million.
For several months, Solan Communications and Computers has not paid employees’ salaries on time.
The company has offered its creditors an arrangement, based on paying out NIS 8 million over a period of several years.