A Central District Court in Israel has approved a debt restructuring plan for Landa Corporation, the digital printing company founded by entrepreneur Benny Landa, according to a report from CTech, the English-language technology news outlet of Calcalist.
As part of the approved arrangement, Israeli private equity firm FIMI Opportunity Funds will acquire full ownership of Landa Corporation and invest $80 million (£64 million) into its operations. The company had previously sought court protection in July, which Digital Pinter reported on, after accumulating debts of approximately $460 million (£368 million). The court subsequently appointed attorney Sigal Rozen-Rechav and CPA Shlomi Filiba to oversee the restructuring process.
Judge Hana Kitsis, who presided over the case, stated that the approved plan would preserve the company’s operations and protect the employment of most of its workforce. She noted that liquidation would likely have produced minimal returns, given that the company’s customer base is primarily located outside Israel and its domestic assets consist mainly of machinery.
“Approval of the debt arrangement will allow many employees to retain their jobs and source of income while preserving their full rights,” Judge Kitsis wrote in her ruling. “On the surface, it appears that any gains from a liquidation alternative would be minimal.”
CTech also reported separately that FIMI partner Gillon Beck acknowledged the significant financial challenges facing Landa Digital Printing, revealing that the company has been losing approximately $150 million (£120 million) annually – equivalent to around $12 million (£9.6 million) per month.
Mr Beck stated that FIMI’s recovery plan anticipates a three-year timeline to stabilise the company. He emphasised the importance of retaining critical suppliers, citing the company’s dependence on them due to a lack of in-house production equipment. Mr Beck also stressed the broader economic and technological value of the deal, noting that the proposed restructuring would help preserve jobs in Israel and maintain access to valuable intellectual property.
