LONDON: Apester Limited, a majority-owned subsidiary of Sivota in Israel, has announced its decision to file for bankruptcy. The company’s board cited a sharp decline in trading performance as the primary reason behind this move. Legal advice prompted the decision, and a bankruptcy hearing is scheduled later this month in Tel Aviv.
Sivota, the parent company, expressed uncertainty regarding the recovery of its investment in Apester. While the exact outcome remains uncertain, it is not expected to significantly impact Sivota’s financial position. Consequently, the Board of Directors plans to write down the carrying value of its investment in Apester to zero.
Apester, which represents the sole investment of Sivota, now faces a challenging road ahead. The situation underscores the volatility in the business landscape and the need for prudent financial management.