Feuchtwanger Industries failed to pay salaries on Friday

The employees of troubled Feuchtwanger Industries did not receive their salaries for July as scheduled on Friday.

Feuchtwanger Industries belongs to the Peled-Givony group, which has been crumbling under a mountain of debt as creditors and the banks scramble to get back at least some of their money. The scramble was touched off by an Israel Securities Authority investigation into the group's leaders, on suspicions of securities fraud.

In a meeting Saturday night between Feuchtwanger Industries officials and the employees' representative, attorney Galila Hornstein, the special manager appointed to Feuchtwanger Industries CA Chen Berdichev said he is holding fast-track talks to sell the company.

Feuchtwanger Industries is in practice a group of companies. Several potential buyers are sniffing at it, including Housing & Construction, which even submitted a letter of intent. Another is Urdan Industries, a member of the Shrem, Fudim, Kelner hroup. The third is a group of investors represented by CPA Avi Toledano.

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