Sources inform ''Globes'' that, following the failure, so far, of the plan to make money by buying Suny Electronics Ltd. (TASE: SUNY) bonds, and possibly use them to take over Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), Yaakov Luxembourg is now considering another deal - the acquisition of Phoenicia Israel-America Flat Glass Ltd. The troubled company has been operating under a stay of proceedings since August.
The board of directors of Luxembourg's investment and oil exploration company Lapidoth Israel Oil Prospectors Corporation Ltd. (TASE: LAPD), discussed the matter this morning, but has not yet approved the move (and it is doubtful if the board will approve it in the future).
As part of the plan to sell Phoenicia Flat Glass, the Ministry of Industry, Trade and Labor has approved NIS 23 million in financial aid for the company. There are also plans to grant a NIS 10-23 million loan from the Histadrut (General Federation of Labor in Israel) and Manufacturers Association of Israel's distressed enterprises fund.
The Nazareth District Court today extended Phoenicia Flat Glass's stay of proceedings until the end of October. During the hearing, the company's attorney said, "We're in talks with several parties. We thought we'd be able to submit a signed offer by one of the parties. We're talking about a public company, whose board of directors discussed the matter today, and asked to say that they view it favorably, and want to conduct a further review. I hope that we'll have this early next week."
Phoenicia Flat Glass, controlled by US glassmaker Guardian Industries Inc., has an estimated NIS 323 million in debts, mostly to suppliers and banks. The company's plant at the Tziporit industrial zone in Upper Nazareth has 400 employees. The company was founded over 70 years ago.
Published by Globes [online], Israel business news - www.globes-online.com - on October 11, 2012
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