Bethel Finance news:
DIY chain Ace Auto Depot Ltd. (TASE:ACDP) today filed for a stay of proceedings, after losing NIS 40 million in January-September 2011 and a 90% plunge in its share price since the beginning of last year. The company, controlled by Moshe Gaon, through B. Gaon Holdings Ltd. (TASE: GAON), and Shlomo Zbeda owes NIS 450 million, including NIS 83 million to its bondholders.
Ace said that the decision to turn to the courts was made after many efforts to find alternative solutions, and was intended to protect the company for the good of its creditors and shareholders.
Besides the bondholders, Ace owes more than NIS 200 million to suppliers and NIS 85 million to the banks. The retailer's suppliers include companies owned by Zbeda, which supplied NIS 56 million in vehicle spare parts in 2008-10. The bondholders will meet Ace officers on Thursday.
At the end of September, Ace had a shareholders' equity deficit of NIS 18.3 million and NIS 36 million in cash and cash equivalents. The court petition was filed before Gaon and Zbeda met their promise to give the company a NIS 20 million owners' loan.
In the petition, Ace said that a stay of proceedings would prevent its creditors fro "taking the law into their own hands and seek to liquidate the petitioner, resulting in its loss. A stay of proceedings will enable the company to restructure its debts and streamline in order to get back on to its feet."
Ace has 51 branches and 1,250 employees nationwide.
Ace's share price was unchanged today at NIS 1.29, giving a market cap of NIS 14 million.
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