Collapsed Automax Importer's Assets to Be Sold Amid Massive Debt

The assets of the collapsed car import business Automax are set to be sold, with a rehabilitation plan expected to proceed following approval by the Tel Aviv District Court. The plan, submitted by the company's liquidators, details the sale of Automax's direct import business, specifically its Chinese vehicle franchises for JAC, YUDO, and Jinbei.

Automax, which imported cars indirectly and directly, faced financial difficulties last year. The rehabilitation plan focuses on the direct import of Chinese vehicles. Deloome, an existing importer of Foton and BAIC vehicles, is set to acquire Automax's import franchises. The liquidators emphasized the urgency of transferring responsibility for JAC vehicles to Deloome to resolve issues for approximately 40 owners awaiting repairs.

JAC has given preliminary approval for the deal, and Deloome will provide warranty coverage for JAC vehicles in Israel. The total claims against Automax's direct import business amount to approximately NIS 61.2 million, with NIS 43 million owed to Bank Leumi and Bank Jerusalem. An additional NIS 3 million is owed to the Tax Authority.

Deloome will pay NIS 1.1 million (excluding VAT) for the franchises and existing vehicle inventory, valued at NIS 1 million. The Chinese manufacturer of JAC vehicles opposed the sale of the franchise to other potential bidders, leading Deloome to purchase Automax's shares and infrastructure, with the manufacturer set to grant Deloome a new franchise.