Court grants Mentergy 40-day stay of proceedings
Tel Aviv District Court judge Varda Alshech appointed Doron Tishman as trustee for the company and directed him to prepare a recovery plan for the company ahead of another court hearing at the end of the stay.
Previously Alshech had rejected the remote learning company's recovery plan, which she said lacked substance. She gave the company 12 hours to file clarifications.
When applying for the court's protection, Mentergy said that cash flow difficulties were hampering its regular operations and that it could not meet its liabilities, including salaries of employees and payments to suppliers.It also noted that two of its external directors had quit, making the company breach the regulations of the New York exchange. The company said its debts to secured creditors, including banks Hapoalim, Leumi and First International Bank, total $12.5 million, of which almost 50% are in the form of convertible bonds. The rehabilitation plan that the judge scorned includes layoffs and the transfer of key workers to subsidiaries, reduction of debts to creditors, and the sale of some remote-learning operations in deals that would generate future royalties. It also discussed having its subsidiary Satcom issue bonds, and using some of the proceeds to honor its own debts. Mentergy also proposed to sell assets and reorganize its group operations, including possibly selling the shell company traded on Nasdaq, while recruiting fresh investors to finance some of its debts. Alshech said the plan lacks in substance, consisting of nothing but vague, foggy general proposals.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV