Infrastructure Firm Y.K.R Barashi Collapses Under NIS 28 Million Debt
Translated & summarized from Bizportal by baba
Infrastructure company Y.K.R Barashi has filed for insolvency with debts of NIS 27.8 million, impacting its 34 employees. The company blames its collapse on the COVID-19 pandemic and subsequent wars since 2023, which caused severe cash flow issues. Despite attempts to secure funding and continue operations, Barashi was unable to meet its financial obligations. The company's assets are valued at NIS 2.5 million, while its liabilities include significant amounts owed to tax authorities and financing companies.
The story in 6 lines · by baba
- Infrastructure firm Y.K.R Barashi filed for insolvency with NIS 27.8 million in debt.
- The company blames its collapse on the COVID-19 pandemic and wars since 2023.
- Barashi employs 34 workers and served clients like the Israel Electric Corporation.
- Efforts to secure funding and continue operations worsened the company's financial state.
- The company's assets are valued at NIS 2.5 million.
- Liabilities include NIS 11 million to tax authorities and NIS 11 million to a finance company.
The infrastructure company Y.K.R Barashi, owned and managed by Ahmed Matar, has filed for insolvency proceedings with the Central District Court due to debts totaling NIS 27.8 million (approximately $7.5 million USD). Established in 1990, the company described itself as a leader in earthworks and infrastructure development for various projects, including road paving, utility lines, and drainage systems. Its client list included major entities such as the Israel Electric Corporation, the municipalities of Ramat Hasharon, Jaljulia, and Tayibe, the Kadima-Tzoran Regional Council, and the Herzliya Development Company. Barashi currently employs 34 workers.
The company attributes its downfall to a combination of the COVID-19 pandemic and subsequent wars since 2023. In its filing, Barashi stated that the pandemic in 2020 caused significant disruption and cash flow problems. While the company attempted to recover, the outbreak of the "Swords of Iron" war in October 2023 presented further challenges, exacerbated by the "Operation "Housewarming"" campaign. These events led to delays in work and payments, worsening the company's cash flow deficit to the point where it could no longer meet its obligations.
Barashi explained that its efforts to continue operations and meet commitments, including taking on additional financing for heavy machinery and external loans, ultimately worsened its financial situation. The company failed to secure external investors or funding for continued operations. "The company is unable to meet its obligations on time, and the gap between its financial resources and the scope of its liabilities does not allow it to continue operating as a going concern in its current format," the filing stated, leading to the decision for liquidation.
According to the company, its assets include equipment valued at NIS 2.5 million, with NIS 1.5 million owed by clients. It has submitted invoices worth NIS 2.7 million that are awaiting approval and holds contracts expected to yield NIS 2.25 to NIS 4.5 million in profit. Barashi's liabilities include NIS 11 million to tax authorities, NIS 11 million to the financing company M.L.R.N, NIS 2.7 million to Peninsula, and NIS 2 million to various suppliers. The insolvency request was filed by attorneys Gonen Kastenbaum and Ran Keren.
Mentioned
