“Landa could become the largest printing company in the world”: Court gives troubled firm a lifeline

Good news for the digital printing company Landa Digital Printing, founded by entrepreneur Benny Landa, which has accumulated debts of approximately 1.7 billion shekels (most of it owed to investors and shareholders). The Central District Court on Thursday issued an order to stay proceedings against the company and appointed CPA Shlomi Filiba and Adv. Sigal Rozen-Rechav as administrators.

Entrepreneur Benny Landa attended the hearing, praised the company’s potential, and, despite its financial situation, predicted an optimistic future. To date, over $1.3 billion has been invested in the company, first by Landa himself, who contributed over $220 million of his own capital, and in recent years by secured investors.

Judge Hannah Kitsis issued the decision, following the recommendation last week from the Commissioner of Insolvency and Financial Rehabilitation Proceedings (Corporate Department), who believed it was appropriate to give the company a chance to continue its efforts to find an investor and reach a debt arrangement as requested. The Commissioner did not oppose the company’s recovery plan being conducted under Amendment 4 to the Insolvency Law, which allows companies in distress to restructure without appointing a trustee to take control. Under Amendment 4, an administrator is appointed to help formulate a creditor arrangement while the company’s management continues to operate.

Over the years, the company raised $1.3 billion, all from foreign investors and Landa himself. Among the largest backers are private international entities that also hold company debt, meaning they invested both equity and loans. This includes German billionaire Susanne Klatten through the Altana chemicals group and the SKion digital printing company she owns, as well as the Winder investment firm of Sweden’s Rausing family.

Landa is the company’s largest shareholder, owning 36.7%. Altana holds 28.9%, SKion owns 16.4%, Winder holds 10%, Landa Labs (Landa’s holding company) owns 4.6%, and the company’s employees hold 3.1%. Landa personally invested $220 million when the company launched.

However, shareholdings mean little when the company carries massive debts of 1.74 billion shekels (about $515 million), of which 1.43 billion is owed to its shareholders. They invested $971 million in equity and also extended $353 million in interest-bearing loans that can convert to equity if the company survives. The remaining debt is owed to suppliers, employees, and Mizrahi Tefahot Bank. The funds went into developing the machines, building production and assembly lines (the parts come from suppliers but are assembled in-house), and creating an international sales network.

The company developed, manufactured, and sold massive digital printers, each weighing about 30 tons. These printers use nano-pigment ink technology that injects tiny color particles, enabling faster and higher-quality commercial printing than HP-Indigo’s older technology. HP acquired Landa founded Indigo for $850 million in 2002.

The company is expected to formulate a debt arrangement during the stay period, with the aim of reaching an agreement with a buyer from among several interested parties currently in contact with the company.

“After the sale of Indigo, I thought I was leaving the printing industry and moving into other fields, but then we discovered nano-pigment ink, we had a breakthrough, and I had to return to the field,” Landa said in court on Thursday. “While HP-Indigo digital presses handle small runs, such as books, Landa focuses on very large-scale printing. Today, only 4% of the printing market is digital. Each Landa press consists of 35 tons of technology invented by some of the world’s leading experts.

“We are at the beginning of a revolution and we are alone in this field, we have no competitors worldwide. Landa could become the largest printing company in the world. Since Johannes Gutenberg invented printing, the major players have all been German. We will bring the crown of the global printing industry to Israel and contribute significantly to the country’s GDP,” Landa concluded.