Infrastructure Firm Y.K.R. Barashi Collapses With NIS 28 Million Debt
Translated & summarized from Mako by baba
Infrastructure company Y.K.R. Barashi has requested insolvency proceedings due to debts of nearly NIS 28 million. The company, owned by Ahmed Matar, blames its collapse on the COVID-19 pandemic and the ongoing war, which caused severe cash flow problems. Despite attempts to secure financing and recover, the company's situation worsened, leading to its inability to meet its obligations. Barashi employs 34 workers and its assets include NIS 2.5 million in equipment.
The story in 5 lines · by baba
- Infrastructure firm Y.K.R. Barashi is seeking insolvency proceedings with debts totaling NIS 27.8 million.
- The company attributes its collapse to the COVID-19 pandemic and the ongoing war since October 2023.
- Barashi owes NIS 11 million to the tax authorities and NIS 11 million to a financing company.
- The company employs 34 workers and its assets are valued at NIS 2.5 million.
- Attempts to secure additional financing reportedly worsened the company's financial situation.
Infrastructure company Y.K.R. Barashi, owned and managed by Ahmed Matar, has filed a request with the Central District Court for insolvency proceedings due to debts totaling approximately NIS 27.8 million. The company, established in 1990, describes itself as a leading firm in earthworks and infrastructure development for various projects, including road paving, water, sewage, and drainage systems. Its client list includes the Israel Electric Corporation, the municipalities of Ramat Hasharon, Jaljulia, and Tayibe, the Kedima-Tzoran council, and the Herzliya Development Company. Barashi employs 34 workers.
The company attributes its collapse to a combination of the COVID-19 pandemic and the ongoing war since October 2023. According to the filing, the pandemic caused significant disruption and cash flow difficulties starting in 2020. While the company attempted to recover, the outbreak of the "Swords of Iron" war in October 2023 presented further challenges, exacerbating its operational difficulties. Delays in project execution and payment receipts, along with blocked funds for approved invoices, severely impacted cash flow, leading to a deficit that the company can no longer sustain.
Attempts to stabilize operations, including taking on additional financing for equipment and external loans, ultimately worsened the company's financial situation. Barashi failed to secure external investors or raise funds for continued operation. The company states it cannot meet its obligations on time, and the gap between its financial resources and liabilities prevents it from continuing as a going concern, necessitating the liquidation request.
Barashi's assets include equipment valued at NIS 2.5 million. The company is owed NIS 1.5 million by clients, with an additional NIS 2.7 million in submitted but unapproved invoices. It also holds contracts worth NIS 15 million, projected to yield NIS 2.25 to 4.5 million in profit. Its debts include NIS 11 million to the tax authorities, NIS 11 million to financing company M.L.R.N., NIS 2.7 million to Peninsula, and NIS 2 million to various suppliers.
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