Defense Supplier Composite Materials Seeks Creditor Protection Stay

In depth

C.M. Composite Materials, which employs about 105 workers at its plant and offices in Modi'in, manufactures composite materials and components for the defense industries, including Rafael, Elbit, Israel Aerospace Industries and Boeing.

The company has accumulated debts of 26 million shekels, and it asked the court to appoint a temporary trustee for it and to suspend proceedings against it. According to the company, the cash-flow difficulties are paralyzing its operations and it cannot pay October salaries.

The court appointed two temporary trustees for the company. The company is seeking the court's protection to allow its rehabilitation, to explore the possibility of finding an investor or buyer, and to inject new capital to continue its operations.