Newsco, owned by Sheldon Adelson, today filed a request to liquidate the “Israeli” newspaper, as part of the dispute with Hirsch Media, owned by Shlomo Ben-Tzvi. Newsco claims that the newspaper is “insolvent” and that “it should be liquidated.”
The request states that so far as is known to Adelson-appointed manager for the newspaper, Adv. Muriel Matlon, none of the paper’s owners are now prepared to inject additional capital to enable the paper to continue operations or even cover its current deficit. “We conclude that, consequently, each day that the company continues to operate and undertake financial commitments, its debts and harm to creditors increase.”
Sources inform ''Globes'' that that “Israeli” employees are unlikely to be paid their December salaries, due on January 9, as planned.
Hirsch Media said in response, “There is a commitment by Newsco through December 31, 2006, to finance the company and its employees. As of January 1, 2007, on the basis of the cancellation announcement by Newsco, Hirsch Media has undertaken to manage the company.”
Newsco said in response, “The fact that employees have not been paid is the direct result of Ben-Tzvi and Hirsch Media’s actions. It’s a pity that they are making promises they cannot keep to both employees and suppliers. We are not surprised, because this is how the company behaves, and we hope that the court will intervene on this matter.”
Published by Globes [online], Israel business news - www.globes.co.il - on January 7, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006