Bank Hapoalim Seeks to Open Insolvency Proceedings Against Starplast
Translated & summarized from Calcalist by baba
Bank Hapoalim has asked a court to open insolvency proceedings against Starplast, a 59-year-old Afula-based plastic manufacturer, and appoint a trustee. The company owes the bank approximately NIS 29.8 million and has failed to make payments after a previous agreement expired. Starplast has faced financial challenges due to rising raw material costs and a strong shekel. The bank claims the company is insolvent and owes tens of millions more to other creditors.
The story in 5 lines · by baba
- Bank Hapoalim filed a request to open insolvency proceedings against plastic manufacturer Starplast.
- Starplast owes Bank Hapoalim approximately NIS 29.8 million.
- The company, founded in 1967, exports plastic products to the US and Europe.
- Starplast has faced financial difficulties from rising raw material costs and a strong shekel.
- The bank claims the company is insolvent and owes additional tens of millions to other creditors.
Bank Hapoalim has filed a request with the Nazareth-Nof HaGalil District Court to initiate insolvency proceedings against Starplast, an established plastic product manufacturer based in Afula. The bank also seeks the appointment of a trustee for the company. According to the filing, Starplast owes the bank approximately NIS 29.8 million. This comes after a NIS 38.6 million debt was repaid in late July under interim agreements.
Starplast, founded in 1967, produces a variety of plastic goods primarily for export to the US and Europe through its subsidiaries. Its product line includes home and kitchen items, garden storage cabinets, toolboxes, and indoor/outdoor storage solutions. The company had previously encountered difficulties due to rising raw material costs, a strengthening shekel impacting profitability, and a European boycott, as reported in May.
The bank's request indicates that an agreement with Starplast to manage its financial distress expired at the end of May. Following its expiration, the company was expected to resume regular debt payments. However, the bank claims that since then, no interest payments have been made on existing credit, and the repayment of loan principal, which was due, has not been resumed.
The bank stated it sent a demand letter in August for immediate repayment of the full debt within 21 business days, but Starplast failed to comply. The bank also noted that negotiations with an external investor did not result in an acceptable offer, as the proposed repayment of only a minimal portion of the debt was opposed by the bank. Bank Hapoalim asserts that Starplast is both balance sheet and cash flow insolvent, with additional debts to other banks and entities amounting to tens of millions of shekels that remain unpaid. No decision has yet been made by the court.
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