Noga Electrotechnika (TASE:
) today filed its defense against a liquidation suit submitted by its landlord.
Noga, controlled by Itzhack Goldenberg, told the Tel Aviv District Court that the liquidation suit was a gratuitous, extreme measure designed to create pressure on the company at the height of its refinancing negotiations with the banks.
Noga warned of a large impending second-quarter net loss that could imperil its business, a suit was submitted to a Tel Aviv court to liquidate the company.
Neches In Or Akiva claimed this week that in June 2002, it bought from Noga all the capitalized lease rights to land in Or Akiva, worth $2 million, after Noga undertook to lease the land for ten years for $20,000 a month.
At the end of the period, Noga was supposed to buy back the land for the same amount - $2 million, Neches claimed. But it says Noga defaulted on its rental payments and now owes it NIS 240,000.
It began to suspect that Noga was insolvent, Neches said, and then read the article in TheMarker published on August 26, 2002, discussing Noga's problems.
Noga today said the sum it owes, about $45,000, is secured by bank guarantees and there is no danger that the sum will not be paid.
Noga added that the lawsuit, and its exposure in the media, have caused it damage.
Last week Noga, controlled by Itzhack Goldenberg, warned that its second-quarter net loss will be between NIS 40 million to NIS 60 million.
For the interim, the Tel Aviv Stock Exchange has suspended trade in Noga shares.