Mega Retail parties to vote on recovery and arrangement plan July 12

By Caroline Salls

Pittsburgh, July 1 – Alon Blue Square Israel Ltd. subsidiary Mega Retail’s request to hold meetings of its debtors, suppliers, service providers and lessors to consider a plan of recovery and arrangement under Section 350 of the Israel Companies Law was approved by the District Court in Lod, Israel.

According to an Alon Blue news release, the meetings are scheduled for July 12.

The plan of recovery and arrangement also requires the approval of the District Court in Lod, Israel.

Alon Blue said the court also approved interim lease payments and fee payments to property management companies, a ban on foreclosures on guarantees provided to secure Mega Retail’s debts, a ban on creditors taking any self-relief, including set off of funds, and a halt to payments on past debts, other than to employees and manpower companies. The payment stoppage includes payments of principal and interest to bank lenders.

The company said it agreed that if any supplier is not fully paid by Mega Retail for the products or services it provides during the interim period, Alon Blue will pay the supplier the amount owed, and any amounts paid by Alon Blue exceeding NIS 60 million will be considered as recovery administrative expenses.

Based in Rosh Ha’Ayin, Israel, Alon owns and operates supermarkets and specialty stores.

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