With Amir Helmer
The Tel Aviv District Court today approved interim bank loans of NIS 20 million for Feuchtwanger Industries.
The special manager appointed to Feuchtwanger submitted an urgent petition Thursday, saying the banks to which the company owes money had agreed to lend it NIS 20 million.
The only exception was Israel Discount Bank, which objected to financing its share. But banks Hapoalim and First International agreed to make up the 25% portion Discount was to have financed in the arrangement.
The money was partly to pay salaries to Feuchtwanger's employees, the company noted in its petition. Moreover, without the infusion, the group companies would grind to a halt.
Together with the infusion, Feuchtwanger's resources will stand at NIS 48.1 million, about enough to get it through to the end of September.
In early August Feuchtwanger applied for a stay of proceedings against it. It admitted to a severe cash flow crunch, plus a managerial vacuum created by the resignation of its management - Rafi Peled, Arie Givony and various directors - subsequent to the commencement of an Israel Securities Authority investigation.
The company owes the banks over NIS 100 million.