This morning, Lod District Court judge Ilan Shilo acceded to the petition by supermarket chain Mega and ordered a 30-day stay of proceedings against the company. In addition, the judge will appoint a special manager as a trustee to run Mega as a going concern for the time being. In the next few weeks, an effort will be made to sell Mega, entire or in parts, to the highest bidder or bidders.
In the court hearing it emerged that Mega has NIS 160 million cash, which means that its decision not to make a current payment totaling NIS 50 million to suppliers last Friday was made despite the fact that the chain was able to meet the payment. The representative of one of the suppliers therefore demanded that the money that was due to have been paid on Friday should not come within the protection from creditors.
Angel Bakeries, to which Mega owes NIS 8.5 million, also said that Mega's cash balance should be used to repay debts to suppliers. The judge said that these decisions would up to the trustee, who could apply to the court as necessary.
Kaplan defends bonus
Mega employees present in court this morning greeted Avigdor Kaplan, chairman of Mega's parent company Alon Blue Square Israel, with cries of anger and condemnation. It emerged yesterday evening that he had been given a NIS 560,000 bonus about a week before the petition for a stay of proceedings. 'You're a thief," one employee shouted at him.
Asked by "Globes" whether he felt comfortable with the bonus he had pocketed at a time when Mega's employees are fighting for their livelihoods, Kaplan responded, "I work in three jobs around the clock and earn a third of what my predecessor earned. I haven't taken a cent from Mega, and so to take the bonus I received and make an issue of it is unfair."
The Official Receiver stated yesterday that he supported a stay of proceedings for Mega for 30 days.
Published by Globes [online], Israel business news - www.globes-online.com - on January 18, 2016
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