The District Court today issued an order to halt the proceedings of Benny Lando’s lab-grown diamond product for 14 days. LucixJudge Irit Weinberg Notowitz has appointed attorney Shai Bar-Nir to submit a report on the company’s status within ten days.
“It appears that there is a need to appoint an administrator in order to examine whether the correct course, given the company’s situation, is the Bankruptcy and Economic Recovery Act, and this relates, among other things, to the responses that have been submitted and the proposed sources of operational financing,” Judge Werenberg-Notowitz said.
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Lab-grown diamond company LUSIX seeks debt settlement
Earlier this week, the company filed a request with the court to halt debt collection proceedings worth NIS 103 million. The company requested a stay of proceedings to prevent debt collection proceedings against it under the fourth amendment to the bankruptcy law, and proposed an arrangement to pay its debts to creditors over a period of five years.
LUSIX also informed its 60 employees that it plans to place them on unpaid leave, or they can waive a hearing and receive a termination letter. Between 20 and 25 employees will remain with the company.
The company’s 60 employees, who are expected to leave the company, yesterday filed a petition with the court opposing a temporary stay of proceedings against Losix. The company is asking for approval of an operating plan to pay off creditors, including employees, within five years. The employees are asking the court to act through an order to open economic rehabilitation proceedings, which would allow them to receive their salaries from the National Insurance Institute.
This article was published in Globes, Israeli Business News – en.globes.co.il – on August 22, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.