Israel Continental Bank is petitioning the courts today to suspend receivership proceedings against Hayl Holdings, a member of the crumbling Peled-Givony group.

Hayl Holdings' debts to creditors including bondholders and the banks total between NIS 350 million to NIS 400 million, TheMarker has learned. It also has assets worth about that amount.

Representatives of Continental Bank and Hayl today reached agreement that within 10 days, the company will present a rehabilitation program, to be prepared by accountant Shlomo Ness.

At the end of July, Continental announced it would exercise its rights granted by Hayl, which could force another group company Mashav Refrigeration to acquire its shares in Feuchtwanger Investments for NIS 50 million.

The announcement followed the collapse of the Peled-Givony group after the banks cut off credit. Institutional investor Leumi Pia, which owns shares in Mashav, promptly filed to halt Continental's move, fearing it would lead to Mashav's collapse.

Hayl has yet to publish its first quarter reports, because Feuchtwanger Investments in which Hayl has a 38% stake has not published its results either, due to a dispute with its accountants.

Fighting over Feuchtwanger

Meanwhile, the giant Housing & Construction (TASE:HUCN) and a group of investors represented by accountant Avi Toledano separately submitted letters of intent to acquire the Feuchtwanger Industries group, TheMarker has learned.

Toledano is a senior member of the Kost, Forer & Gabbay group, the very accountants that refused to approve Feuchtwanger's books for the first quarter.

One of the investors is believed to be Shlomo Schmeltzer, among the owners of New Kopel (TASE:NKPL), who commented, "Several market entities are examining Feuchtwanger. At this stage, nothing has been closed."

No prices were mentioned in the letters of intent.

This is the second offer Housing & Construction has made for a Peled-Givony group company. Last week it cast its eye at Mashav Refrigeration's air conditioning business.

On Sunday Feuchtwanger Industries petitioned for protection from creditors. The company employs 850 people in a number of privately-held and public companies.

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