Infrastructure Firm Y.K.R Barashi Collapses With NIS 28 Million Debt
Translated & summarized from N12 by baba
Infrastructure company Y.K.R Barashi has filed for insolvency with debts of nearly NIS 28 million, citing the COVID-19 pandemic and the ongoing war as primary causes. The company, owned by Ahmed Matar, experienced cash flow problems exacerbated by project delays and payment issues. Despite efforts to secure financing, Barashi could not meet its obligations to creditors, including tax authorities and a financing company. The firm is requesting court approval to enter liquidation proceedings.
The story in 5 lines · by baba
- Y.K.R Barashi filed for insolvency with debts of NIS 27.8 million.
- The company blames COVID-19 and the ongoing war for its financial collapse.
- Debts include NIS 11 million to tax authorities and NIS 11 million to a financing firm.
- Barashi employs 34 workers and lists major Israeli entities as clients.
- The company seeks court approval to enter liquidation proceedings.
Infrastructure company Y.K.R Barashi, owned and managed by Ahmed Matar, has requested to enter 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 and utility lines. Its client list includes major entities such as the Israel Electric Corporation and several municipalities.
Barashi, which employs 34 workers, attributes its downfall to a combination of the COVID-19 pandemic and the ongoing war since October 2023. The company stated in its filing that the pandemic caused significant disruption and cash flow difficulties. The subsequent outbreak of war exacerbated these issues, leading to delays in project execution and payment receipts, which further deepened the financial deficit.
Attempts to recover from these crises, including taking on additional financing for equipment and operations, ultimately worsened the company's financial standing. Barashi was unable to secure external investors or sufficient funding to continue its business. The company reported assets including equipment valued at NIS 2.5 million and outstanding payments from clients totaling NIS 1.5 million, with pending invoices for NIS 2.7 million.
However, the company's liabilities are substantial, with NIS 11 million owed to 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. Barashi stated that its financial resources are insufficient to meet its obligations, leading to the decision to seek liquidation.
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