This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Court grants Mentergy 40-day stay of proceedings

An Israeli court today granted troubled Mentergy (Nasdaq: MNTE) a 40-day stay of proceedings, until November 12, 2002..

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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%
YHOO $44.45 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs