Battered directors in their luxury cars
The collapse of Noga Electrotechnika came less than two months after that of the Peled-Givony group. In early September 2002, before the publication of its Q2 financials, Noga relased a profit warning that noted that the company might write off up to 90 percent of its shareholders equity because of an unexpected NIS 60 million loss. This was the start of the company's free fall.
When the court granted the company protection against creditors in mid-September, it turned out that Noga was NIS 850 million in debt. Rapid expansion in a receding economy, combined with poor investments in high-tech and real estate and amateurish financial management led to Noga's demise.
Within days, officers and directors began handing in their resignations. Contractors and customers started moving in on liens, and projects were halted.
Noga is currently being run by a trustee. The controling shareholders, Eli and Dvora Ozen, who were greatly to blame for the company's fall, still drive four corporate luxury cars.