Asik and its owners are represented by Advs. Amit Lederman and Idan Miller, partners in our firm’s Insolvency and Corporate Restructuring Department, in a debt restructuring approval proceeding at a scope of NIS 55 million.

In a precendtial and unusual decision rendered yesterday at Nazareth District Court, the judge certified a temporary suspension of proceedings against the company and owners for the purpose of convening a creditor meeting to resolve the debt restructuring, based on its acquisition by an investor.

The court’s decision prevents at this stage disposition and forfeit of bank guarantees in projects executed by the company until the meetings are convened. It is noteworthy that this decision is in contrast with a series of decisions of various instances over the past months that prevented suspension of proceedings in debt restructuring – a position that forced the legislator to pass a temporary order allowing suspension of proceedings in debt restructuring; the latter has not yet entered into effect and therefore required creative argument to afford the court jurisdiction to suspend such proceedings, in contravention of the provisions of the new Insolvency Law.

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The translation was executed courtesy of Tomedes Translations