Yochai Schneider, the U.S. businessman who bought

Rogosin (TASE:

ROGO

) for $100,000 in June 2002, is giving up on the indebted company.

Schneider bought control over Rogosin from Ezra Harel a day before an NIS 26 million bill to bond-holders came due. Now, after failing to reach an arrangement with the company's creditors, and mainly with its bond-holders, he is giving up and sending the company to liquidation.

Rogosin today notified the Tel Aviv District Court that its board of directors had recently reported attempts to reach an arrangement with debt-holders. But the board had decided that under the circumstances, no arrangement could be reached. Such an arrangement was a precondition to trying to raise more funding to keep the company afloat.

Barring a last-ditch arrangement with debt-holders, the board decided, the only option is to liquidate the company.