Emblaze head: Bankruptcy would mean 6,000 layoffs

Emblaze chairman Eli Reifman said the banks would not make capital available if the comapany is put in receivership.

Emblaze Group (LSE: BLZ) chairman Eli Reifman has said that if the Tel Aviv District Court agrees to the demand of US hedge fund CCM Master Qualified Fund to appoint a receiver and declare the company bankrupt, then huge and irreversible damage would be done to his business and the company's employees.

According to Reifman such a court order would deal a lethal blow to the possibility of raising money from various sources as part of the struggle for control of Emblaze because the banks would not make capital available in such a situation. Reifman made clear that if he fails in his bid to save the company from being taken over, the 6,000 employees would be laid off. He claims that the aim of those trying to take over Emblaze is to empty out the company.

Reifman is one of the founders of technology group Emblaze and owns 17% of the company. The company's share has lost 43% of its value over the past year and two months ago Globes revealed Reifman's involvement in grey market debts.

Published by Globes [online], Israel business news - www.globes-online.com - on January 25, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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