The Central District Court today issued a 14-day stay of proceedings for Benny Landa's lab-grown diamonds producer LUSIX. Judge Irit Weinberg Nutovitz appointed Adv. Shay Bar-Nir to present a report on the company's situation in 10 days time.
Judge Werinberg-Nutovitz said, "It seems that there is a need to appoint an official in order to examine whether, due to the company's situation, the right course is through the Insolvency and Economic Rehabilitation Law, and this is regarding, among other things, to the responses that were submitted and the proposed operating funding sources."
The company petitioned the court at the beginning of the week with a request for a stay-of-proceedings on debts of NIS 103 million. The company requested the stay to prevent debt collection proceedings against it according to Amendment 4 of the Insolvency Law, and proposed an arrangement for the payment of its debts to creditors spread over five years.
LUSIX has also told its 60 employees that it plans to put them on unpaid leave, or they can waive a hearing and receive a letter of dismissal. Between 20-25 employees will remain to work at the company.
The company's 60 employees, who are expected to leave the company, yesterday filed with the court their opposition to granting LUSIX a stay of proceedings. While the company is asking for an operations plan to be approved for repaying the creditors, including employees, within five years. The employees are asking the court to act through an order to open proceedings for economic rehabilitation, which would allow them to receive their salary from the National Insurance Institute.
Published by Globes, Israel business news - en.globes.co.il - on August 22, 2024.
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