Banks demand appointment of receiver for Tevel

The banks are demanding the appointment of a liquidator or receiver for cable TV firm Tevel. The banks might object to Tevel's court petition to appoint a trustee and for a stay of proceedings, Ma'ariv reports.

Tevel has a massive NIS 2.8 billion debt. Bank Leumi provided 40% of Tevel's financing, with the remainder coming from Bank Discount, First International Bank of Israel, and Bank Hapoalim.

Tevel and its subsidiary Gvanim on Monday petitioned Tel Aviv District Court for a four-month stay of proceedings, and to appoint leading accountant Itzhak Suary as trustee for the purpose of drafting a recovery plan.

Tevel CEO Joseph Douer said that during the stay of proceedings, Tevel will finance its activity from revenue and subscriber fees, while maintaining positive cash flow. He said that Discount Investments will assist with financing should it be required for the cash flow.

Tevel recently dismissed another 250 workers and cut wage costs of the remaining staff by 10%.