Published 04:18 08.09.11
Latest update 04:18 08.09.11
State handled Agrexco illegally, say bondholders
Agrexco's court-appointed trustee manager, Shlomo Nass, says the state failed in its duty to help the company in its hour of need.
By Ido Baum
As Agrexco limps toward liquidation, its bondholders claimed Wednesday to have learned that the company entered the court's protection against creditors by improper procedure.
Minutes of a meeting held at the Government Companies Authority on April 28 show how the process unfolded. The decision that the company seek a stay of proceedings had been made by the Government Companies Authority, members of the Plant Board and Agrexco's management.
The purpose of a stay of proceedings is to give the company a chance to reach an arrangement with creditors. In the case of the agricultural produce exporter, no arrangement was reached and the stay resulted in Agrexco's collapse, the bondholders wrote on Wednesday.
The rub is that properly the decision belonged to the cabinet, argue the bondholders in their letter sent to the attorney general.
Agrexco's court-appointed trustee manager, Shlomo Nass, has added another accusation, that the state failed in its duty to help the company in its hour of need.
Next week another court hearing will be held, after Judge Varda Alshech last week told Nass to file an orderly petition to liquidate the company. The company's operations are slated to be sold piecemeal. Theoretically the bondhholders may yet hope that the state rush to Agrexco's rescue after all. Or they could be brewing a compensation claim.
As Agrexco limps toward liquidation, its bondholders claimed Wednesday to have learned that the company entered the court's protection against creditors by improper procedure.
Minutes of a meeting held at the Government Companies Authority on April 28 show how the process unfolded. The decision that the company seek a stay of proceedings had been made by the Government Companies Authority, members of the Plant Board and Agrexco's management.
The purpose of a stay of proceedings is to give the company a chance to reach an arrangement with creditors. In the case of the agricultural produce exporter, no arrangement was reached and the stay resulted in Agrexco's collapse, the bondholders wrote on Wednesday.
The rub is that properly the decision belonged to the cabinet, argue the bondholders in their letter sent to the attorney general.
Agrexco's court-appointed trustee manager, Shlomo Nass, has added another accusation, that the state failed in its duty to help the company in its hour of need.
Next week another court hearing will be held, after Judge Varda Alshech last week told Nass to file an orderly petition to liquidate the company. The company's operations are slated to be sold piecemeal. Theoretically the bondhholders may yet hope that the state rush to Agrexco's rescue after all. Or they could be brewing a compensation claim.
