Court extends Mega protection against creditors by 3 months

Israel's Central District Court in Lod today agreed to the request by the trustees of financially troubled Mega's to extend the stay-of-proceedings to protect the supermarket chain from creditors for an additional three months to May 17. However, the trustees told the court that they want to end the sale process by April 23 so that the supermarket chain will change hands before the Passover holiday.

In response, the trustees published two options for selling the chain as one block. In the first option, which the trustees call the "cash track," the buyer would buy the entire chain for a payment of NIS 150 million on the day of the transaction, and the balance in 12 payments over three years.

In the second option, called the "operational track," the buyer would also pay NIS 150 million on the day of the transaction followed by five quarterly payments directly to suppliers to cover past operations debits. If this debt exceeds NIS 350 million, this could be spread over 12 quarterly payments including interest.

Published by Globes [online], Israel business news - www.globes-online.com - on February 14, 2016

Court extends Mega protection against creditors by 3 months

The Israeli supermarket chain's trustees prefer a sale deal to be completed before the Passover holiday.