The High Q Cram School chain, which gives preparatory courses for university entrance and high school matriculation exams, is on the verge of bankruptcy. In a court hearing on Sunday, Tel Aviv District Court President Judge Eitan Orenstein announced that he was approving the request for liquidation of the chain and appointing Adv. Karen Reichbach-Segal from the Eitan, Mehulal & Sadot, Advocates & Patent Attorneys law firm as temporary liquidator, as proposed by Adv. Hayut Greenberg, representing the employees.
The liquidation request was filed in the name of 50 company employees, after the teachers in the chain were notified at the beginning of the month that their salaries would not be paid. The employees allege that High Q is insolvent, and is no longer able to conduct business.
According to Greenberg, the company owes an estimated NIS 2.5-3 million, because the employees received only part of their March salaries, in addition to the company's debts (provisions) to the provident funds and unpaid regular rights (compensation, recreation pay, etc.).
"On the eve of Passover, hundreds of the company's employees and thousands of its students are helpless and in distress. This is the right time for the petition. The company has reached the end of the road," the petition stated.
The petition adds that the appointment of a liquidator to take control of the company and continue its activity for at least a short while is urgently needed in order to find a solution for the thousands of students with no remedy, and for courses scheduled to begin in the coming weeks in preparation for national examinations.
According to the petition, concern exists that due to the holiday, the window of opportunity for finding an investor or buyer for the company will close, and any delay is liable to detract from its value. The petitioners are worried that they, like the company's other creditors, will be left unable to obtain what they are owed.
Published by Globes [online], Israel Business News - www.globes-online.com - on April 12, 2017
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