FIMI to invest $80 million in Benny Landa's collapsed digital printing company
As part of the investment, FIMI will receive new shares of the company, Landa Corporation, while existing shares will be canceled. After the transaction is completed, the buyer will hold 100% of its share capital. The move requires approval from a creditors' meeting and court approval.
FIMI Fund is expected to acquire the failing digital printing company of Benny Landa - Landa Corporation Limited, which has accumulated a debt of approximately NIS 1.7 billion ($498 million), most of it to investors and shareholders.
FIMI Opportunity Funds will invest $80 million in the company, in exchange for the allocation of shares and the cancellation of existing shares. After the transaction is completed, the buyer will hold 100 percent of the company's shares.
The arrangement managers will bring the deal with FIMI for approval to the creditors' meetings - with the intention that it will allow repayment of some of the company's debts, maintain it as a going concern and as an active company that employs hundreds of employees and supports suppliers. If the meeting approves, the move will be brought to court for approval.
According to the proposal, up to $22 million of the amount that FIMI will inject into the company will be used to pay off some of the debts, as well as to partially finance the expenses of the arrangement process.
A few months ago, the Central District Court issued a stay of proceedings order for the company and appointed two arrangement managers, attorney Sigal Rozen-Rechav, of the Rozen-Mizrachi law firm, and CPA Shlomi Filiba, of the Shlomi Filiba law firm. So far, over $1.3 billion has been invested in the company, initially by the company's founder, Benny Landa, who invested over $220 million of his own money in the company's capital, and in recent years by investors who are secured creditors. Landa Corporation Limited filed a request in June for a stay of proceedings order in order to formulate a debt arrangement. As of the date of the request, the company's debts stand at NIS 1.748 billion ($520 million). Most of the debt, NIS 1.4 billion, is to investors and shareholders. In addition, the company owes NIS 300 million to other creditors, including suppliers (about NIS 246 million) and more. Including this, it says, it owes Mizrahi Tefahot Bank in the amount of NIS 25 million. On the other hand, the company's assets stand at approximately NIS 423 million (excluding intellectual property).
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The company develops and manufactures digital printing machines for the commercial printing, packaging and publishing markets and is considered a pioneer of the boundaries of traditional printing. The technology that the company offers is based on a unique water-based inkjet process, developed by the company and protected by numerous patents.
Landa Corporation Limited (Landa Digital Printing) is a private company, founded by the Landa brothers. The company and its subsidiaries employed approximately 500 employees, most of them in Israel, but their number has been significantly reduced in the past year. The secured creditors and financiers are Altana Netherlands B.V. and Skion Digital Printing GmbH, represented by Attorney Guy Ido of the Gornitzky law firm, and WINDER Pte Corporation, represented by Attorney Idan Miller of the Barnea, Jaffe Lande & Co. law firm. FIMI is represented by Attorney Alona Baumgarten and Attorney Sharon Amir of the Naschitz Brander Amir law firm. Landa is represented by the Goldfarb Gross Seligman & Co. law firm. Most of the employees are represented in the company by Attorney Liza Hadash, and additional employees by Attorney Offir Ronen.
