Globus Max filed a petition for a 90-day stay of proceedings, during which the shareholders will continue putting up to NIS 6 million into the company, mainly for paying its employees. The petition has the consent of Psagot Investment House Ltd., Globus Max's main creditor. Globus Max states that Mizrahi Tefahot Bank (TASE:MZTF) withdrew the company's line of credit early this week, and took the amount transferred for itself "with no notice." The court has granted the petition.
The company said, "In the past three years, the company has worked towards massive growth in its business, given the growth and competition in the cinema sector. Following the chain's volume of construction and accelerated growth, the company faced cash flow problems that impeded its functioning. The company's main shareholders have therefore recently put tens of millions of shekels into it in order to reduce its debts and for current operations, until it is able to sign an agreement for restructuring its debt and raising more capital."
Globus Max is one of the three main companies constructing, managing, and operating movie theaters in Israel. The company has 850 employees, and currently operates 11 cinema complexes around Israel. Globus Max is also the Israeli distributor for some of the world's largest movie studios and cinema rights holders: Warner Brothers, United International Pictures, Columbia Pictures, Universal Studios, 20th Century Fox, Sony Pictures, Paramount, Disney, Pixar, and DreamWorks.
Published by Globes [online], Israel Business News - www.globes-online.com - on June 13, 2017
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