The Manufacturers Association of Israel will call on the court today to appoint a trustee for the Mega chain. The organization's position reflects the view of most of the suppliers to which Mega owes NIS 700 million.
It was also learned that Mega's employees will demonstrate today in front of the courthouse. Suppliers told "Globes" that they accuse Mega's management of organizing the workers to demonstrate in order to exert pressure on them to accept the proposed settlement.
Today, the court in Lod will hear Mega's request for the convening of a creditors' meeting for the purpose of achieving a debt arrangement, in which Mega is seeking to reschedule NIS 1.3 billion in debt to its suppliers and the banks.
Biscol Investments CEO and Manufacturers Association small and medium-sized business division chairman Lior Levy told "Globes," "We're asking for the appointment of a trustee to oversee the process on the court's behalf. The entire plan that Mega is proposing is without a court-appointed trustee. They want a de-luxe stay of proceedings, and we say that we want court supervision in one form or another."
Levy added, "Mega's current managers are agents of the shareholders, who want to inject only NIS 200 million and go on managing the company after losing NIS 760 million, as if nothing had happened, and we want supervision."
Manamim Food Industry owner and representative of the small businesses in the Food Industries Association Liora Birnhack told "Globes," "The owners are trying with all their might to organize pressure on all the parties to agree to a plan that will absolve them of any responsibility for what is going to happen, and are organizing the workers to demonstrate. They're taking the workers to exert pressure in all directions. It's a scandal… You have to think about the tens of thousands of workers in the small businesses most of whom will also be laid off. Of course the small businesses want Mega to be saved, and we’re willing to contribute our share, but Mega can't be saved without the owners taking responsibility, especially by putting in their money."
Published by Globes [online], Israel business news - www.globes-online.com - on July 1, 2015
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