Aharonsi Engineering Seeks Debt Arrangement to Avoid Liquidation Amid 33 Million Shekel Debt
Aharonsi Engineering and Infrastructure, a longstanding family-owned company established in 1988, has filed for a stay of proceedings at the Haifa District Court due to debts totaling approximately 33 million shekels. The company specializes in complex earthworks and infrastructure projects, operating primarily within factories, shopping centers, and active institutions. Represented by attorneys Yonat Meir, Shay Piada, and Uri Horesch, the firm is seeking to formulate a creditors' arrangement aimed at preserving the company as a going concern and maintaining ongoing projects and operations.
Currently employing around 20 workers, Aharonsi attributes its cash flow crisis to the repercussions of the "Iron Swords" military operation. Key factors contributing to the distress include project delays, labor shortages necessitating costly foreign workers, soaring raw material prices, and poor payment practices by developers and clients. The company lists prominent clients such as OPC, Saridom Israel, CMC, Infinia, Huggla Kimberly, the Ministry of Defense, Amigur (Jewish Agency), Sonol Israel, Amot Investments, and Delek Israel.
Despite financial challenges, Aharonsi highlights several active and profitable projects, including the Afcon project (Negev Railway) for a railway substation, the Dalia power station near Kiryat Malachi, preliminary works for the Hadera 2 power station commissioned by OPC, the Caesarea Development Company’s road expansion and infrastructure project, and the Shorak waste recycling station by Shikun & Binui. The company stresses that liquidation would destroy value and severely harm creditors’ recoveries, while a debt restructuring would enable business recovery and maximize returns for all stakeholders.
Attorneys Piada and Meir emphasized the company’s longstanding reputation and contribution to national infrastructure, stating, "This is a reputable company that has thrived for years and should not be subjected to liquidation. These are good people, builders of the country, whose only fault is being caught in a cash flow crisis due to circumstances beyond their control."
