Update: the Cofix foreclosures have been withdrawn against NIS 1.7b surety
A few hours before Cofix (TASE: CFX) is scheduled to report its results for the first quarter of the year and a few days before Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. (TASE:RMLI) is slated to complete the deal with the Cofix group making him the owner of 50.01% of the company, Cofix is sinking deeper into the mud. The dispute between the chain of cafes and a supplier is giving rise to questions about its financial future and dependence on its new partner.
The Tel Aviv District Court today extended the foreclosure order given for Cofix to four of the chain's franchise holders up to NIS 1.7 million, sources inform "Globes." According to the petition, the five foreclosure sources stipulated by the court, including the concerns providing credit to Cofix - banks and credit card companies - and also Rami Levy, which announced the acquisition of 20% of Cofix's shares early this year, each of which separately announced that money or assets linked to the company could not be foreclosed from it.
In view of these answers, Impofix, which supplies cups and other plastic products to the chain, petitioned the court for an extension of the foreclosure to money that Cofix's franchise holders transfer to the chain. "Urban Cofix and Super Cofix are avoiding payment of their debt to Impofix," alleged Impofix owner Dekel Ben Lulu in his petition to the court, adding, "It does not appear that a source for clearing the debts exists."
After explaining and attaching the response he received from the banks, credit card companies, and Rami Levy to the petition, Ben Lulu concluded, "In the bottom line, money cannot be foreclosed from the holders of money" in favor of Cofix. His arguments indicates that the answers to his letters to Bank Hapoalim (TASE: POLI), Mizrahi Tefahot Bank (TASE:MZTF), Isracard, Visa, and Rami Levy show that other creditors have imposed foreclosures on Cofix's money and rights, or that these are attached and subject to the bank's right and cannot be attached in favor of Cofix.
"The foreclosures registered against Cofix and the assignation of the rights and lien of money and rights" in favor of the banks and credit card companies," Impofix argues in its petition, "also indicate the financial collapse and entanglement in debt of the respondents." Impofix adds that "all the rights" of the companies involved "are leveraged and the foreclosures obtained nothing," while the respondents' rights and money in the possession of the concerns approved in the foreclosure petition cannot be foreclosed.
Published by Globes [online], Israel business news - www.globes-online.com - on May 30, 2018
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