Tevel gets a break: Court orders stay of liquidation proceedings

Tel Aviv District Court issued a stay of liquidation proceedings for cable TV firm Tevel through June 27. In addition, the court appointed accountant Zvi Yochman from accounting firm Itzhak Swary as trustee and special manager.

On Monday Tevel petitioned the court to appoint a trustee and special manager, as well as for a four-month stay of liquidation proceedings.

Tevel has almost NIS 3 billion debt, and has postponed payments to suppliers for four months.

Equipped with this stay order, Tevel believes it can draft a recovery plan. CEO Joseph Douer said yesterday that the aim of the stay is to ensure that the company will continue providing services and to enable a comprehensive recovery plan in cooperation with the banks and shareholders. He said that the plan will be submitted for the approval of the court.

Douer said that the plan will also allow Tevel to complete the planned merger with cable TV firms Matav Cable Systems (Nasdaq:MATV) and Golden Channels.

Douer said that during the period of the stay, 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 cash flow.

Discount Investments is willing to assist with up to NIS 5 million, coordinated with the trustee.