Leumi demands loan payback from Clubmarket's coffers
Clubmarket's trustee managers, Shlomo Nass and Gabi Trabelsi, said yesterday that they had no intention of repaying Leumi such sums from the creditors' funds.
Bank Leumi is demanding - in addition to the monies it has coming in any final creditors arrangement - NIS 83 million repayment from the funds of the collapsed Clubmarket chain in respect of the loan it granted the owners to buy the company, which was mortgaged in Leumi's favor. However Clubmarket's trustee managers, Shlomo Nass and Gabi Trabelsi, said yesterday that they had no intention of repaying Leumi such sums from the creditors' funds.
Also yesterday Nass and Trabelsi met with the company's unsecured creditors, the myriad of suppliers, many of them small firms, who carry the lion's share of Clubmarket's estimated NIS 1.6 billion debt.
The trustees are attempting to reach a final mutually acceptable arrangement among all creditors, secured and unsecured. The draft arrangement that they had prepared has met with vociferous objections by the suppliers, who are demanding that the repayment be in proportion to each's debt (which would favor them above the banks) while the banks - the secured creditors - are demanding that they get most of their monies back. The trustees' proposed arrangement would have the suppliers getting just 50 agorot to the shekel for their debts owed, and even less due to the increasing uncertainty in the final sums to be paid out. The suppliers are unwilling to accept this.
In addition, the trustees said that Clubmarket's owners, who had offered to transfer some NIS 11 million into the failed company's funds to assist in particular the small suppliers, had now put their offer on hold. The problem lies in the voluntary cash injection being conditional on waiving any future claims against the owners - the Borovich-Mozes and Rosen families - and the company's managers and directors. The suppliers are demanding a clarification over what such a waiver would involve.
"Hundreds of small suppliers are on the verge of collapse," Nass said yesterday.