Amid News of $1.8B Cumulative Losses, FIMI Representative Believes there is a ‘Chance for Success’ for Landa

It was reported by CTech, published by Calcalist, last month that FIMI, an Israeli private equity firm, would seek to gain approval from the court and creditors to take ownership of Landa Digital Printing. The firm offered to purchase the company for $80 million, with a hearing originally set for Sept. 4 (as of press time, there has been no update on the hearing). Most of Landa’s creditors support the proposal, but have faced challenges from Vitania, Landa’s partner in a recently built facility to which it owes approximately $65 million in future rent payments.

Just this week, CTech reported that Gillon Beck, a partner representing FIMI, revealed the company’s losses for the first time. He said the company has lost approximately $150M annually, resulting in cumulative damage of about $1.8B to shareholders, lenders, and creditors. Although he said the path forward would be challenging, he noted FIMI has a recovery plan and that critical suppliers would be prioritized.

“According to our plan, it will take about three years to reset the company. It would be a mistake not to approve the proposal. There is an opportunity here for hundreds of families to continue, for the company to remain in Israel, and for patents and technologies that may yet succeed. … Replacing critical suppliers in a turnaround like this will not succeed. The company has no production equipment and is dependent on these suppliers.”

He concluded: “It’s not a walk in the park, it’s very, very difficult, but if I didn’t believe there was a chance of success, I wouldn’t be here.”

Amid News of $1.8B Cumulative Losses, FIMI Representative Believes there is a ‘Chance for Success’ for Landa

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