Court Appoints Receiver for LID, Firm Owes Over $8 Mln
February 21, 08 The Tel Aviv County Court has appointed a receiver for The order was issued at the request of an Israeli bank, First International Bank, which is owed more than According to the notice, the receiver is to take hold, protect and, if needed, to manage the company’s assets; operate the business as a “live business” in order to protect its reputation; and issue a report on the company’s state within 14 days
Also, the receiver is not allowed to sell any of the company’s assets without the court’s approval. This last order may mean that the company will not be able to sell diamonds or jewelry.
LID has been suffering difficulties for some time. In March 2007, its
In its bankruptcy petition, LID listed $157.8 million in assets and $143.9 million in debts. In 2006, it reduced its debts to U.S. banks by some $18 million plus interest, the company reported.
Two years prior to that, the company moved many of its operations to
Since then, LID has reorganized, made changes to its managerial team and modified sales targets.
Neither the company nor its receiver was available for comment.