Food Company’s Board Opposes Receivership

The board of Vita-Galilee Fruit Ltd. (Vita-Pri Galil) filed with the Haifa District Court an objection to receivership and foreclosure of the liens filed by Bank Leumi and Israel Discount Bank, Globes Online reported. The company and its subsidiaries will also convene shareholders and creditors' meetings to submit to them a recovery plan. Vita entered into receivership when Bank Leumi and Discount Bank refused to again postpone repayment of the company's debts. On Friday, receivers were appointed to the company after Bank Leumi and Discount Bank filed an ex parte request with the court. Vita's debts total NIS 160 million, including a NIS 10 million government loan. Vita also owes NIS 10 million to preferred creditors, and NIS 88 million to unsecured creditors, including NIS 38.5 million to farmers and to packaging manufacturers. Read more.