05/07/2011 | Israel

Is Agrexco in bankruptcy?

Agrexco, the largest exporter of agricultural products of Israel, requested a stay of proceedings.


 
The court in Tel Aviv has given four days grace of a stay of proceeding. Agrexco is waiting the decision of the Israeli government,which is  holder of 33% of the company, to inject funds. The cost of financing would be € 8.5 million.

 

Tnuva Food Industries Ltd, which holds 11% of Agrexco, has agreed to finance its part of its holding in the company.


 
Agrexco has accumulated losses estimated at 106 million Euros. Without the help of the state, and without extending the stay of proceedings, Agrexco could go into liquidation and dismiss employees.
 

 

source : globes israel's business arena

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