The upheaval at Ortam-Sahar Engineering has reached its climax, with the Tel Aviv District Court approving a creditors arrangement and the sale of the financially troubled company to a group headed by businessman Hanan Assayag and Raanan Aloni.
Ortam-Sahar trustee Adv. Shaul Bergerson told the Court, "After a month of hard work, we succeeded in selling the company, which will continue doing business and providing money for payments. This settlement will lead to money being paid to the many ordinary creditors who suffered damage from the company's collapse, and to the bondholders, who lost a great deal of money when the company collapsed. We managed to prevent the company's liquidation, which would have caused damage and heavy losses and halted the construction of thousands of housing units in Israel."
The settlement involves a gradual injection of NIS 150-200 million into the company. NIS 75 million will be given to the trustees in payments spread over five years. The company will also sue suppliers who owe it money, with 47.5% of up to NIS 60 million in proceeds from the lawsuits, and 60% of proceeds in excess of NIS 60 million being given to the trustees. Profits in excess of NIS 150 million will also be given to the trustees.
The Court ruled that the winning group would announce within 20 days the projects it intends to restart. The company is in the process of building 4,000 housing units in 30 projects.
Published by Globes [online], Israel business news - www.globes-online.com - on December 6, 2016
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