State Receiver: Better Place Must Liquidate

YERUSHALAYIM -

The state receiver has told the Lod District Court that there is no alternative to liquidation for the failed electric car company Better Place, The Jerusalem Post reported.

In its first official reply to the company’s petition for a liquidator, the state receiver said on Monday that “there is no choice but to appoint a temporary liquidator” to handle the four subsidiaries that make up the company.

The receiver, who is the official custodian of the state’s property and assets, argued that the appointment of a temporary liquidator for Better Place was necessary “in order to provide an urgent administrative and legal response to the company’s employees, customers, suppliers and creditors.”

The Knesset Economics Committee announced a special hearing next week to discuss the company’s closure, especially its impact on customers.

Unlike some other recently bankrupt companies, Better Place did not request a stay in court proceedings to enable it to continue operating, though it did request the appointment of accountant Yoav Kfir as its temporary liquidator.

The appointment could be crucial in determining whether a company’s mistakes are investigated for possible fraud, and companies often lobby for a “friendly” candidate to investigate them.

However, the state receiver disputed Better Place’s request to appoint Kfir as temporary liquidator. The response said that “without denigrating his strong capabilities, which are acceptable to the receiver, his appointment to the job was proposed by the companies, whose conduct has to be examined in the proceedings.”

Therefore, the state receiver said that the court should “consider neutral candidates to the position of temporary liquidator” as an alternative, or in addition to Better Place’s choice.