Collapsed supermarket chain Clubmarket had total debts to creditors of 1.6bn shekels (US$352m), according to the Haaretz newspaper.
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The figure is 230m shekels more than stated by the company, when it filed for protection from its creditors in July, the paper said.
According to a creditors’ arrangement that Shlomo Nass and Gabi Trabelsi, Clubmarket’s trustee managers, are putting together, the banks will forgo some of their debt getting 80%. The banks, which are secured creditors, are used to receiving their money in full in such situations. In this case, though, unlike in many cases of corporate collapse, the bulk of the debt is not to banks but to the chain’s suppliers, big and small.
Although the sum of 1.6bn is higher than originally estimated, this reflects the sums owed as presented by each creditor, and which will require an in-depth examination by the trustees. The final size of the debt may well be less than this, though if disputes do arise, the creditors are entitled to appeal to the court for a decision.
Among the suppliers hit by Clubmarket’s collapse are mostly food companies, as well as other retail chains that ran the Extra Tav shopping vouchers together with Clubmarket. It includes fashion chains Castro and Fox as well as Ace Buy & Build and others that lost millions through Clubmarket’s fall.
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By GlobalDataA draft creditors’ arrangement is expected to be released soon, and a vote by all creditors will be expected on September 27.
