The Tel Aviv District Court on Tuesday accepted a petition from

Noga Electrotechnika (TASE:

NOGA

) to suspend proceedings against the company.

Attorney Zuriel Lavie has been appointed trustee over the company. He is supposed to put together a creditors' arrangement and submit the plan to the company within 30 days.

Noga, which is controlled by Itzhack Goldenberg, told the court today that its debts total NIS 823 million. It owes the banks NIS 414 million, secured by liens, and another NIS 9 million to its own employees, income tax, and VAT. It owes unsecured creditors another NIS 202 million, Noga told the court.

Noga's petition to the court for a 60-day stay was supported by its chief secured creditors banks Hapoalim, Mizrahi and Union. Noga also told the court that the banks might lend it interim financing, subject to a plan to be submitted to them, until the company is reorganized. Meanwhile, from August the banks have frozen its accounts, Noga said, and bounced NIS 4 million worth of checks.

Earlier this month, Neches In Or Akiva sued for the company's liquidation, claiming that Noga owes it NIS 240,000 in rental fees. Its lawsuit followed a warning from Noga that it would lose between NIS 40 million to NIS 60 million in the second quarter.