The ongoing saga of fallen Israeli fresh produce group Agrexco could be coming to a close, with reports in the country claiming that a bid led by Bickel Flowers to purchase the company as a going concern may be accepted by the Tel Aviv District Court.
Agrexco was liquidated earlier in the month when Judge Varda Alshech terminated its stay of proceedings, after the only tabled bid, from Israel-based logistics group Kislev Forwarding and Custom Clearance, was deemed 'no longer relevant'.
Financial publication Globes has reported that Agrexco liquidator Shlomo Nass is likely to recommend that the court accepts the NIS40m (€7.9m) Bickel bid, which consists of an NIS16.1m (€3.2m) cash payment plus future payments derived from sales, over a rival bid from CAL Cargo Airlines owner Ofer Gilboa.
Gilboa has reportedly also offered NIS40m for Agrexco, with an NIS12m (€2.4M) payment up front, but the Bickel bid has the backing of the Israeli exporter's employees.
A statement sent to court by the temporary liquidators and published by Globes read: 'Deciding weight should be given to the identity of the bidder, his ability to revive the company from the circumstances to which it has fallen to become a successful company in the future, as well as to the structure of the offer.
'For this purpose, the temporary liquidators have consulted with representatives of the banks and the employees, and after obtaining their positions and thoroughly reviewing the figures, the temporary liquidators believe it is proper to declare Bickel's offer as the winning offer.'
Bickel's bid has also received the backing of Agrexco's workers committee, although of the 332 domestic and 180 overseas employees currently on Agrexco's books, only 50-70 will remain regardless of the winning bid, according to the liquidators.
If the offer is accepted, it will represent quite a turnaround for owner Gideon Bickel, who had previously fought against the company when he sought the right to export flowers independently.
'Agrexco was a monopoly, and I wanted to export Gypsophila flowers, on which I wrote my masters thesis at university, but the state would not let me,' he told Globes. 'They told me 'you can only export through Agrexco'.
'I petitioned the High Court of Justice against the minister of agriculture, Agrexco and the Flower Marketing Board, and I won on freedom of occupation grounds. Since then I've expanded to export fresh produce, herbs, fruit and vegetables.'
No comments yet