"Landa Digital Printing lost $150 million annually, cumulative losses hit $1.8 billion"

Most of Landa Digital Printing’s creditors support the company’s proposed arrangement to transfer ownership to FIMI for $80 million, according to meetings held on Thursday. The main opponent is Vitania, to which Landa owes NIS 220 million in future rent payments for a new, specially constructed building the company is set to occupy. Vitania is a partner in the property along with three of Landa’s private companies.

The meetings, which lasted 10 hours, grew contentious after some creditors, led by Attorney Lior Dagan, representing Dagesh, objected to the company’s submission of a last-minute addendum to the plan. The addendum, filed Wednesday evening, included a release from legal claims for managers, including founder Benny Landa. Dagesh, which is owed NIS 25 million, was offered just 15% repayment (NIS 3.9 million) under the plan. Dagan argued that since FIMI did not condition its bid on such an exemption, there was no justification for it, especially given that $1 million in insurance coverage already exists for such claims.

Representing FIMI, partner Gillon Beck acknowledged the scale of the company’s losses: “This is a very complex deal. You know how much the company has lost in recent years.” He disclosed, for the first time, that Landa Digital Printing has lost about NIS 500 million (approximately $150M) annually, roughly NIS 40 million each month ($12M), resulting in a cumulative damage of about NIS 6 billion to shareholders ($1.8B), lenders, and creditors.

Beck also laid out FIMI’s recovery plan: “According to our plan, it will take about three years to reset the company. It would be a mistake not to approve the proposal. There is an opportunity here for hundreds of families to continue, for the company to remain in Israel, and for patents and technologies that may yet succeed.” He emphasized that critical suppliers would be prioritized, noting the company’s reliance on them: “Replacing critical suppliers in a turnaround like this will not succeed. The company has no production equipment and is dependent on these suppliers.”

He concluded: “It’s not a walk in the park, it’s very, very difficult, but if I didn’t believe there was a chance of success, I wouldn’t be here.”

Earlier, arrangement managers Attorney Sigal Rozen-Rechav and CPA Shlomi Filiba submitted a notice to the court, with the Commissioner’s approval, stating that the debt arrangement aligned with FIMI’s proposal. They stressed the importance of providing creditors with clarifications and relevant information to guide their decisions on the plan.