Official receiver: Better Place can't be saved

"Better Place's condition means that there is no choice but to appoint a liquidator for the group's companies."

The official receiver agrees that Better Place cannot be saved. "Better Place's condition means that there is no choice but to appoint a liquidator for the group's companies," said Official Receiver Prof. David Hahn in a laconic response today to the company's petition to appoint a liquidator filed with the Central District Court in Lod yesterday.

According to the official receiver, the appointment of a liquidator to the petitioning companies, which are included in the Better Place group, is necessary in order to provide an urgent administrative and legal response to the companies' employees, customers, suppliers, and creditors.

Yesterday, four Better Place companies in Israel petitioned the Central District Court to be liquidated and for the urgent appointment of a temporary liquidator, after the companies became insolvent. The petition states that the companies owe external suppliers $40 million, and that the value of their assets is $9.5 million.

The petition adds that Better Place had $7 million revenue in 2012 and a negative cash flow from operations. It lost $454 million in 2012 and had a cumulative loss of $812 million.

In contrast to petitions by other big companies which collapsed in recent years, in its petition for liquidation, Better Place did not ask for the court for a stay of proceedings so that the group could continue operating, but asked to order the group's liquidation and the appointment of Yoav Kfir CPA as liquidator.

In his response, Hahn also mentioned the requested appointment, saying that a different or additional accountant should be appointed to liquidate Better Place. "Without denigrating from his capabilities, which are acceptable to the official receiver, his appointment to the job is proposed by the companies, whose conduct has to be examined in the proceedings, and the official receiver therefore proposes that the court should consider the appointment of neutral candidates to the position of liquidator as an alternative, or in addition, to him." the receiver's response states.

Hahn proposes several experts, including Gabi Trabelsi CPA, Adv. Sigal Rozen-Rechav CPA, Adv. Alona Baumgarten, Chaim Kimmel CPA, and Adv. Elad Afari.

Published by Globes [online], Israel business news - www.globes-online.com - on May 27, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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