Rogosin Bail-out Sinks

Yochai Schneider, the U.S. businessman who bought Rogosin for $100,000 in June, is giving up on the company.

Schneider bought Rogosin from Ezra Harel a day before a large payment to bondholders came due. Now, after failing to reach an arrangement with the company's creditors, and mainly with its bondholders, he is giving up and sending the company to liquidation.

Rogosin yesterday notified the Tel Aviv District Court that its board of directors had recently attempted to reach an arrangement with debt-holders. But the board had decided that under the circumstances, no arrangement could be reached. Such an arrangement was a precondition of trying to raise more funding to keep the company afloat.

Barring a last-ditch arrangement with debt-holders, the board decided, the only option is to liquidate the company.

In light of Schneider's report, trustee Investec Bank will ask the court to appoint a temporary receiver.

The primary reason Rogosin is in receivership is failure to pay a debt to its bondholders. The day the NIS 18 million payment was due, Ezra Harel announced he had sold control to Schneider, who deferred payment to reach an arrangement with bondholders. Yesterday he told the court he had failed to do so.