Veteran Israeli Lighting Manufacturer Seeks Debt Freeze Amid Industry Shift and Construction Slowdown

Gaash LED, a longstanding lighting manufacturer based in Kibbutz Gaash, has filed for a debt freeze after accumulating liabilities exceeding 22 million shekels. The company, which designs, produces, and markets advanced lighting solutions primarily for institutional and public sectors, submitted an urgent request on Wednesday to stabilize its operations and convene creditor meetings to approve a debt arrangement. This plan is based on a proposal from Idealight Israel to acquire at least 5.5 million shekels of the cooperative's equity.

Founded in 1964 and operating under the cooperative structure since 2013, Gaash LED employs 34 workers and serves clients involved in construction and infrastructure projects, including commercial, public, and institutional buildings, hospitals, warehouses, and street lighting. The company attributes its financial difficulties to the global transition to LED technology, increased competition from cheap imports from China, the security situation in Israel, and a construction sector slowdown.

Creditors include Bank Hapoalim, Bank Massad, Kibbutz Gaash and its corporations, suppliers, service providers, and landlords. The legal team representing Gaash LED, led by attorneys Tzuriel Lavi and Yossi Mandelbaum, emphasized that the debt freeze request is a proactive measure to preserve the cooperative as a going concern, protect employees and creditors, and facilitate a court-supervised debt settlement. Idealight Israel, represented by attorney Avichai Verdi, has offered a purchase proposal seen as a viable path to recovery and job preservation. Gaash LED intends to continue transparent operations during the legal process and aims to maximize creditor returns while maintaining orderly business activity with the goal of emerging solvent.