No alternative to liquidation, Rogosin tells court

Rogosin failed to reach an arrangement with its bondholders and consented to the appointment of a temporary receiver.

Yochai Schneider has given up. Three months after he acquired control of Tel Aviv Stock Exchange-listed Rogosin from Ezra Harel for pennies, the company announced today that was unable to reach an arrangement with its bondholders. It was therefore unable to obtain the financing need to survive as a going concern.

Rogosin’s announcement stated, “To our great regret, there is no alternative but to liquidate the company.” Rogosin thereby consented to the petition filed with the Tel Aviv District Court to liquidate the company and appoint a temporary receiver.

Rogosin announced, “The board of directors was informed at its meeting on October 3, 2002, that the company would probably be unable to reach a creditors arrangement, which was an essential condition to raise the necessary financing to continue operations as a going concern. Most of the company’s bondholders did not bother to respond to contacts or even meet company representatives.”

An appendix provided the detailed information that was the basis of the board’s decision. The appendix stated that the company had an unsecured loan to bondholders totaling NIS 81 million. The bank’s guaranteed debt to Bank Hapoalim was €17 million. A lien on shares was the collateral for that debt.

Rogosin also owes the First International Bank of Israel NIS 6.3 million, secured by a lien on company shares and bonds held by subsidiaries.

Published by Globes [online] - - on October 6, 2002

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