Ampal-American Israel Corporation Files Chapter 11 Petition
TEL AVIV, Israel, Aug. 29, 2012 (GLOBE NEWSWIRE) -- Ampal-American Israel Corporation (Nasdaq: AMPL), a holding company with experience in acquiring interests in various businesses with emphasis in recent years on energy, chemical and related fields, announced today that it has filed a voluntary petition for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York. The Company's Board of Directors determined that such a filing is in the best interests of the Company's stakeholders and the best and most efficient method for the Company to pursue a plan to restructure the Company's Series A, Series B and Series C debentures (the "Debentures").
As a result of the filing and pursuant to Section 362(a) of the United States Bankruptcy Code, immediately upon the filing of the petition an injunction referred to as the "automatic stay" was imposed staying the continuation or commencement of any actions against the Company and its assets, wherever located. Therefore, all of the Company's creditors are prohibited from enforcing any of their rights and bringing any claims against the Company or any of its assets, wherever located.
The Company has been seeking to negotiate agreements with the holders of the Debentures for eight months. The Company offered the Debenture holders a number of proposals to restructure the Debentures, including the proposed outline for arrangement that the Company published on July 17, 2012, as amended on July 30, 2012. At this time, the Company has determined that the best forum to continue negotiations and to seek approval of a restructure plan is through the Chapter 11 process.The Company expects to work closely with its Debenture holders, creditors and other stakeholders to implement a restructuring plan through the Chapter 11 case, and to emerge as a financially stronger company.
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