Court appoints trustees for Israeli KFC franchisee

In depth

The company operating 12 branches of the KFC chain in Israel filed an urgent request with the court to approve a cash payment of 100 thousand shekels to suppliers, according to Calcalist and Israel Hayom, amid debts of about 50 million shekels. According to Calcalist, the judge approved the request, and a further hearing will be held on Monday on the request to appoint a temporary trustee.

The Be'er Sheva District Court ordered the opening of insolvency proceedings against the company, and its debts include about 37 million shekels in owner loans and 1.9 million shekels owed to about 110 employees, according to Calcalist. According to Ice, the debts, the employee roster and the continued operation of the company will be examined.

Two trustees were appointed to examine rehabilitation options, and according to Calcalist they will submit a preliminary report within two weeks. According to Israel Hayom, the background includes debts to employees, unpaid rent and difficulties in transferring funds from Russia.