The Tel Aviv District Court yesterday granted Feuchtwanger Industries and Mashav Refrigeration 24 days of protection against creditors so that the companies can prepare a recovery plan.
The two companies are part of the Peled-Givony group, which collapsed because the controling shareholders used the assets of the companies in the group to finance the acquisition of other companies in a crisscross fashion. The group's dire situation came to light a few weeks ago when it failed to submit its financial reports.
District Court Judge Varda Alsheikh froze the applications of Israel Discount Bank and Bank Hapoalim to put Feuchtwanger Industries under receivership because of a debt of NIS 91 million. The judge appointed CPA Hen Berdichev to act as Feuchtwanger Industries' trustee and CPA Uriel Lahav as Mashav's during the 24-day period.
Had the court granted the banks' request and put the companies under receivership, this would have closed the lid on any possible recovery, the judge explained.
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