TEL AVIV (Feb. 23)
— Foreign creditors of Koor Industries refused Wednesday to withdraw their demand to liquidate the giant Histadrut-owned conglomerate.
Koor’s managing director, Benny Gaon, has appealed to the government for a $50 million cash emergency bailout. But he got a cool response from Finance Minister Shimon Peres.
Peres said he would agree only if he is convinced significant progress has been made in Koor’s recovery program. That entails large-scale dismissals and the sell-off or closure of a number of Koor subsidiaries.
A Tel Aviv district court proposed to the creditors seeking relief that they hold off on bankruptcy proceedings.
The attorney for Bankers Trust Co. of New York told the court he could not agree to with-draw or postpone the liquidation demand without the consent of all of his principals.
Bankers Trust represents American banks holding millions in defaulted loans to Koor. It initiated the liquidation action.