Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) is showing interest acquiring the Globus Max chain of movie theaters. The chain has had business trouble recently, and is under a stay of proceedings, due to debts totaling NIS 30 million. The chain is currently owned by Moshael Straus, chairman of the board of trustees of Yeshiva University in the US, and entertainment industry figure Herbert Seif. The third partner is Israeli businessman Bennett Kaplan.
Partner is searching for sources of revenue that are synergetic to its activity in the television sector, and acquiring a chain that is in sales proceedings is consistent with this strategy.
The Jerusalem District Court recently approved a temporary stay of proceedings for the Globus Max chain. The trustees for the stay of proceedings are Boaz Barzilai, CPA, and Advocates Gil Oren and Alona S. Baumgarten.
Globus Max's most significant secured creditor is Psagot Investment House Ltd., and another creditor is the Teachers Funds. Globus Max requested a 90-day stay of proceedings in order to enable it to continue operating as a going concern, especially during the summer - a busy time for movie theaters. The shareholders expressed willingness to inject up to NIS 6 million more for immediate payment of employees' salaries and further operation of the company.
The petition for the stay of proceedings shows that Globus Max has accumulated a NIS 55 million to financial creditors and a NIS 45 million debt resulting from expenses incurred in constructing and renovating movie house sites and from debts to the chain's suppliers. The company also owes NIS 8.2 million to its employees, NIS 850,000 to the authorities, and NIS 3.8 million to its landlords. Globus Max owes NIS 29 million to Psagot, NIS 8.5 million to the Teachers Funds, NIS 1 million to Mizrahi Tefahot Bank (TASE:MZTF) (net of guarantees), and NIS 800,000 to overseas owners of rights. The company also owes NIS 65 million to its shareholders.
Published by Globes [online], Israel Business News - www.globes-online.com - on August 22, 2017
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