The printers using the 50 or so Landa machines in operation around the world will be relieved by the confirmation that investment group FIMI has bought Landa Digital Printing.
The judge at Israel’s Central District Court, deciding on the outcome of the insolvency, ruled that the $80 million deal offered a better solution, especially for those employed by the business, than making the company bankrupt and selling off its assets. Details of what now happens to the company’s debts and how it will operate in future, are not yet known.
It is understood, however, that FIMI is offering a deferred payment scheme to many of the creditors which will kick in next year assuming that the business is cash and profit generating by then.
According to reports in the Israeli press, one creditor that is not delighted is developer Vitania which is involved in turning a complex on the Ness Ziona Science Campus into industrial, development and commercial space. According to the development company “Vitania and the Landa family signed an agreement at the beginning of 2021 for the purchase of half of the phase A rights in a complex on the Ness Ziona Science Campus, with a total area of 105,000m2. designated for industry, offices and commerce.”
That first phase amounts to 37,000m2 of space to be used by Landa Digital Printing among others. FIMI has declared that it is not interested in occupying this space, hence the spat that is taking place.
There should be less trouble with trade creditors, including the likes of Komori as supplier of the paper transport system and Fujifilm as supplier of the inkjet heads, as these have no immediate replacement for any business from Landa.
In her ruling Judge Hana Kitsis noted that a forced sale of assets would only benefit overseas companies rather than Israeli businesses, while a sale would provide continued employment for many Israelis. “Approval of the debt arrangement will allow many employees to retain their jobs and source of income while preserving their full rights. On the surface, it appears that any gains from a liquidation alternative would be minimal,” she declared.
The deal also safeguards the value of machines that are already installed as it suggests a continuation in the supply of consumables, including ink and imaging blanket that are central to the technology.
At the start of the insolvency process, a number of users had written to the administrators point out that without Landa, their companies and consequently those employed by them, would suffer.
