The Central District has appointed a temporary trustee for the Nidem companies of businessman Shalom Nidem. Judge Irit Weinberg Notowitz: “The temporary trustee must examine the state of the companies and their ability to offer a debt settlement. There is no dispute that the companies are insolvent”
From the request submitted in July by Nidem Global to the court to delay proceedings and propose a creditor settlement, it appears that Adler Chomsky invested approximately NIS 868,000 in the company and Keshet Holdings approximately NIS 500,000. On the other hand, the day before the Nidam company went to court, 43 investors filed a request to freeze proceedings and an order to open proceedings against the companies.
The investors also requested the appointment of a temporary trustee for the company, and claimed through attorney Dorit Karni and Amit Lederman, partners in the firm AYR-Amar Reiter Jean Shuchtovitz & Co., that they are creditors of the two companies by virtue of funds they provided to them as part of raising capital and debt from the public: “The applicants who are not Investment sharks, but ordinary citizens who were looking for an avenue to invest their savings, followed Nidem Communications’ ethereal promises, given without proper disclosure of its name, for returns of tens of percent, only to be proven that Nidem Communications, with which they had contracted, faded away and that Nidem Global stepped into its shoes, that the companies do not meet their obligations towards them and that the legality of their activities is highly questionable. And even to find out in the last days, that apparently their money disappeared without leaving a trace. The applicants who made loans to Nidam Communications received quarterly interest payments, but those of them who asked to receive back the investment amount in accordance with the company’s commitment were given a series of checks, some of which were dishonored. Moreover, some of the quarterly payments due in June 2022 were canceled due to lack of solvency, and Nidem Global even announced that it is experiencing cash flow difficulties and that it intends to petition for the approval of a creditor arrangement.
Nidem Global Company claimed through attorney Lior Caspi that the foreign shareholder in the last two years paid a total of approximately NIS 10 million from his own pocket to the company and to Nidem Communications in order to allow the company to purchase inventory and open electronic stores. It was also claimed that when the Corona epidemic broke out, world trade was silent And there was great difficulty in transporting and selling the goods in light of the fact that China closed all its factories and it was not possible to meet the delivery and production times of the goods. It was further claimed that the USA was also paralyzed as well as European countries, “so that the company slowly began to lose its cash flow and in addition to meeting the financial repayments to investors and interest payments in huge amounts, something that ‘eliminated’ the company’s cash flow.” The request also shows that Nidam Global has a debt of approximately NIS 4 million to Bank Hapoalim secured by a lien on the controlling owner’s house, and that over 40 investors have contacted the controlling owner and asked for their money back, which has brought the company to a severe cash flow problem. Nidam also claimed that astronomical interest has been paid every month on behalf of the company in a total amount of NIS 5 million so far. It also appears from the company’s response to the court that the company has debts in the amount of approximately NIS 16 million, out of which the interest was paid in the amount of approximately NIS 5 million.
Judge Irit Weinberg Notowitz ruled last week: “I came to the conclusion that at this stage a temporary trustee should be appointed for the companies in order to examine their situation and their ability to offer a debt settlement. There is no dispute that the companies are insolvent. The companies are proposing a settlement under which NIS 83,000 will be paid per month for 60 months. An orderly operating plan was not attached to the request and it is not clear whether the company has sufficient sources to finance the operation and the proposed arrangement of creditors.” The judge appointed attorney Doron Arusi as temporary trustee for the companies and issued an order freezing proceedings against them.
Attorney Lior Caspi, the attorney for the companies said in response: “It is to be congratulated that the judicial system is attentive and alert to the situation of the businesses that were severely affected both during the Corona period and as a result of the general global situation.”