Bagir Germany's cash flow is insufficient to meet its debts to creditors.
BGI Investments (1961) Ltd. (TASE: BGI) today notified the TASE that the German unit of its suits manufacturer subsidiary, Bagir, has filed for bankruptcy. Last week, a German court approved the opening of insolvency proceedings against Bagir Germany Holding GmbH, as the company's cash flow is insufficient to meet its debts to creditors.
Bagir Germany had $20.1 million in sales in the first half of 2011, almost a third of Bagir's total revenue of $68.5 million. Bagir Germany posted a loss of $1.1 million in the first half.
Bagir said that it reviewing the consequences of Bagir Germany's insolvency on the company, and that BGI will report a material loss and cash-flow reduction and in its financial report for the third and fourth quarters of the year.
BGI's share price was unchanged in morning trading at NIS1.39, giving a market cap of NIS 73 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 18, 2011
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