Final agreement was reached here today with all creditors of the debt-ridden Somerfin Company. As a result, it was expected that the Israeli Government, the ship firm’s principal creditor, will probably not suffer any loss.
The shipping line recently ran into trouble with various creditors and guarantors which included not only the Israeli Government but also a Swiss consortium and the Anglo-Portuguese Bank. The trouble was believed to have stemmed from losses suffered by Somerfin in the operation of its passenger ships.
Under today’s agreement, the line’s tanker, the Aurora, will continue operating, and its earnings will be applied for debt settlements over the next 10 years. Israel will be free to operate or sell four other Somerfin ships on which she holds first mortgages. The agreement is expected to be approved shortly by the subcommittee on economic affairs of Israel’s Cabinet.
(Last week, the cruise ship Nili, one of the Somerfin vessels, was ordered sold at auction by an American court in Miami to satisfy a bankruptcy claim. The 500-passenger ship has been tied up in Miami since November 18, when the Israel Government asked for a legal attachment on a claim that Somerfin had failed to meet a mortgage payment.)
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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.
