A $25 million cash infusion by an unnamed American Jewish investor seems to have saved the Carmel Carpet Co., the principal employer in the township of Or Akiva, near Hadera.
The firm, some $40 million in debt to the banks and verging on bankruptcy, is owned by Avraham Shapira, a former Knesset member of the Orthodox Agudat Israel party.
Its American savior is reported to be an Orthodox Jew.
News of the deal was a relief to employees and creditors alike. Production, which had been cut back, will be resumed and back wages are expected to be paid.
The banks that loaned money to Carmel will be repaid over a period of years.
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The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
