Troubled Israeli exporter Agrexco is apparently offering to pay its creditors around 10-15 per cent of the money it owes them as it bids to extricate itself from enormous debts racked up over the past decade.
As reported in Israeli financial daily Globes, Agrexco will meet with its unsecured creditors in Tel Aviv later today, where they will be asked to vote on the proposed deal.
The high court in Tel Aviv recently approved a bid tabled by Israel-based logistics operator Kislev Forwarding and Customs Clearing to acquire Agrexco, although no deal has yet been finalised.
According to Globes, Agrexco's debts to five of Israel's major banks are in the region of tens of millions of euros, while it is also understood to owe millions of euros to employees and local authorities, plus €30 million to ordinary creditors.
The Israeli government owns 30.3 per cent of Agrexco and has a controlling interest on its board of directors.
Food business Tnuva Food Industries has an 11 per cent shareholding, with the Israeli Farmers Federation and other agricultural associations owning the remaining 58.7 per cent.
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