The Tel Aviv District Court today extended Agrexco's stay of proceedings by two weeks., The ruling comes a day after the Ministry of Finance refused to provide interim financing of €1.75 million to keep the company afloat and offered only €500,000.
However, Arko Holdings Ltd. (TASE: ARKO), controlled by Arie Kotler, has offered to loan Agrexco €1.25 million to allow the exporter of fresh agricultural produce to keep operating as a "going concern." Kotler wants to compete for the acquisition of control of Agrexco.
The court appointed trustee Adv. Shlomo Nass field a request to the court today saying that obtaining this financing would let him run the business. Nass believes that he needs €3 million in order to keep Agrexco running for another month and he is working to achieve an additional €1.75 million of financing from other sources.
Agrexco has debts of €106 million.
The government owns 30.3% of Agrexco, the growers and farmers councils own 58.7% and Tnuva Food Industries Ltd. owns 11%.
Published by Globes, Israel business news - www.globes-online.com - on July 5, 2011
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