Sources inform ''Globes'' that most publishers oppose the debt write-off and rescheduling proposed by the buyers of bookseller Steimatzky Group, the consortium led by Yafit Greenberg (G. Yafit), and some did not bother to appear at last Thursday's meeting. Since the consortium signed the agreement to buy the bookseller, it has been in talks with its main creditors. It has proposed a 30% debt write-off and rescheduling the rest of the payment over six months.
Steimatzky's debt is estimated at NIS 50-70 million, including payments for the second half of March, due last Friday.
The publishers that are part of the consortium - Kinneret Zmora-Bitan Dvir and Korim Publishers - support the proposal, Yediot Books Ltd., Keter Publishing House Ltd., Modan Publishing House Ltd., Hakibbutz Hameuchad -Sifriat Poalim Publishing Group, and apparently Matar Publishing House Ltd. all oppose it. Although they agree that the proposal is reasonable and better than the write-off previously estimated two weeks ago, but they are demanding guarantees that this is a one-off write-off and that no more requests will be made in the future.
The buyers claim that most of Steimatzky's 30-plus creditors support the proposal, and that they constitute a majority. Steimatzky employees are also organizing against the proposal, because only half of the company's depleted severance fund will be refilled.
The buyers today announced that the acquisition of Steimatzky from Markstone Capital Partners Group LLC has been completed and the money transferred. The proceeds will be used to partly pay suppliers and partly top up the severance fund. The remaining debts will be paid by the financially distressed Steimatzky.
Published by Globes [online], Israel business news - www.globes-online.com - on June 22, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014