Israel's Orckit notes trustees seek stay, appointment of trustee

By Caroline Salls

Pittsburgh, Feb. 18 - The trustees of Orckit Communications Ltd.'s series A and series B notes filed a petition with the District Court of Tel Aviv for a stay of proceedings and the appointment of Yoav Kfir as a trustee over the company, according to a 6-K filed Tuesday with the Securities and Exchange Commission.

The court ordered Orckit to file its response by the end of business on Feb. 19 and scheduled a hearing for Thursday.

Under the petition, proceedings would be stayed for a period of 90 days or until the court rules otherwise.

During this time, no legal actions may be taken against Orckit without court approval, no receiver may be appointed in connection with the company's assets without court approval and no creditor, including the Office of the Chief Scientist, may seek personal relief without court approval.

In addition, the trustee would be authorized to take any action in the name of Orckit and to use the assets of the company and engage service providers and professionals, as necessary to implement his actions as trustee.

According to the 6-K, the trustee would make payments from the company's account solely for services and products to be provided during the stay period in the context of ongoing activities and in order to advance Orckit's arrangement proceedings and rehabilitation.

During the period in question, any action to be taken in the name of the company would require the signature of the trustee or another person authorized by the trustee.

Orckit is a Tel Aviv-based maker of broadband telecommunications equipment.

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