Anxious Paz renews request for Burger Ranch receiver
Paz argues that selling the chain as a going concern is the only solution that would enable Burger Ranch to repay most of its debts.
A week ago the court gave Burger Ranch 20 days to respond to Paz's demand that the court appoint a temporary receiver, but that's not fast enough for the energy firm. Yesterday Paz, which used to own a stake in Burger Ranch and remains owed money by the tottering chain's present owner, filed a second, urgent petition, asking the court to reconsider the wait.
In light of all of this, Paz says, a receiver must be named to the chain urgently - in another 15 days, the company could collapse, it argues.
If the court agrees to the request, Dr. Shlomo Nass, of Nass & Co, will probably be appointed as a temporary receiver, and will likely be called on to quickly sell the chain or find it a new investor.
Paz argues that selling the chain as a going concern is the only solution that would enable Burger Ranch to repay most of its debts. It its activities are suspended, it can't be sold, Pas says, which means it and other creditors will lose its money.
Its other creditors include Neto, Eitan Industries and Yael Yerek Alim, who have filed suits to. In fact, the court has delayed its decision on Paz's latest request by two days, until after it decides on the urgent, unilateral request these suppliers filed Sunday, claiming the chain owes them NIS 2.3 million.
Paz has been looking to get rid of the chain for some time. In February 2006, businessman Yossi Hoshinsky bought the burger chain from Paz for NIS 20 million, to be paid in 32 quarterly payments starting in March 2007, plus future payments determined by the company's performance.
But earlier this year, Hoshinsky died of a heart attack. His business partner, Burger Ranch CEO Rami Elad, stepped in, but has been unable to meet the loan payments.
Paz had started the legal wheel turning by suing for a receiver to be named to Burger Ranch because of nonrepayment of its loans. The court gave the patty provider 20 days to respond to the request and rejected Paz's request that the response be speedier.