Israeli exporter Agrexco has been given a temporary stay of execution in order to allow time for appointed liquidators to prepare for what now seems like the inevitable break-up of the company.
According to a report in Israeli financial daily The Marker, procedures designed to protect the debt-laden group's creditors will remain in place at least until 11 September 2011.
However, it now seems almost certain that the exporter will indeed go into liquidation, forcing producers who have traditionally sold their fruit and vegetables through the company to seek alternative arrangements.
One insider told Eurofruit: 'Over the past few years, many new export companies have sprung up in Israel, some of them run by ex-Agexco employees, so there will certainly be options for growers to market their produce in European markets via other channels.'
During a hearing in the Tel Aviv District Court earlier this week, it emerged that a proposed deal offering to repay just 10-15 per cent of the debt owed to Agrexco's creditors had been rejected, scuppering the only potentially viable deal to buy out the group.
No comments yet