Bank Discount cuts Tevel credit

The banks object to the stay of liquidation and are considering taking receivership or other legal measures, cable TV firm Tevel said in its petition with Tel Aviv District Court.

Tevel had also petitioned that the court appoint a trustee and special manager.

The court granted the order today.

In the petition Tevel said that Israel Discount Bank has already begun cutting Tevel's credit line. Tevel expects the bank will prevent it from using subscriber fees due at the beginning of May.

Tevel said that its estimated debt comes to NIS 3.075 billion, of which NIS 2.3 billion is owed to the banks. Without court intervention, Tevel's financial collapse with all its attendant ramification, is a fait accompli, Tevel said.

Tevel said that the trustee will submit to the court in no more than 60 days a plan relating to the state of its business and to progress in negotiations for a recovery plan.