Feuchtwanger Industries, a member of the collapsing Peled-Givony group, on Wednesday petitioned the Tel Aviv District Court to pay NIS 7.3 million in wages owed to 850 employees of the company.

The special manager noted that the workers never received their full June salaries.

He also asked the court to allow payment to suppliers and subcontractors of advances on planned work for the company.

The manager argued that the payments were "critical to restoring confidence that the we can continue to operate."

According to the manager, the financing will come from the company's new credit during its stay of proceedings. On July 25, employees received a total of NIS 1.55 million in advances on July wages.

Yesterday requests were also filed to combat the stays of proceedings granted Feuchtwanger Industries and Feuchtwanger Investments. Israel Discount Bank, owed NIS 21 million by Feuchtwanger Industries and a total of NIS 69 million by the company and its subsidiaries, has requested that the stay be revoked.

Discount Bank, an insured creditor, claims that the proposed credit during the stay of proceedings, NIS 20 million from banks and NIS 20 million from an investor, means insured creditors - the banks - inject cash to be used to repay all creditors, including those who are uninsured.

Minority shareholders Atalca and Ora Weiss, who have a 3% stake in Feuchtwanger Investments, have asked the court to revoke the stay granted the company and to appoint a temporary receiver to investigate the events of a bizarre week in which NIS 80 million disappeared from company coffers and the remainder of its assets were sold or mortgaged to guarantee NIS 170 million in illusory debts, while the company received no reasonable consideration in return.

The shareholders argue that all the parties that sought the stay have a hand in the company's current financial straits. These include parent Hayl Holdings, which off-loaded its debt onto Feuchtwanger, and Bank Leumi, which hopes no one will receive permission to investigate the reasons all the company's assets were mortgaged to the bank.