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Showing posts from September 7, 2011

LAST MINUTE POSTURING AS AGREXCO SET TO BE LIQUIDATED "PIECE MEAL"...VERY LITTLE HOPE THAT THE GOVERNMENT WILL STEP IN TO BAIL OUT BONDHOLDERS...

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 d…