Having followed the story through from when Landa Corporation’s financial struggles started to surface, to a stay of execution granted by the court to enable them to raise more funds to keep the company afloat…the increasingly inevitable conclusion has now been reached and FIMI Opportunity Funds has been successful in acquiring the debt-ridden digital printing company in a relatively complex USD$80m debt restructuring plan.
Landa Digital Printing has now formally been acquired by FIMI Opportunity Funds
In her ruling at Israel’s Centra District Court over the weekend, Judge Hana Kitsis noted that the arrangement “ensures the company’s continued operations and safeguards the employment of most of its employees.” She emphasized that liquidation – the alternative option being looked at during the court’s deliberation - would likely have only yielded minimal proceeds, given that the company’s customers are primarily overseas and its only real assets in Israel are machinery.
Founded by entrepreneur Benny Landa, Landa Digital Printing develops and manufactures advanced digital printing machines for the commercial printing, packaging, and publishing sectors. Its technology relies on a proprietary water-based inkjet process protected by numerous patents. During the court proceedings, more than 30 of its customers had signed a letter to the court voicing their support for the business.
Under the approved arrangement, private equity firm FIMI now effectively owns 100% of Landa Corporation and has committed – at least in the short term - to maintain employment of most of the existing workforce. What is notionally an USD$80m investment in the company, comes at a time when any step forward for Landa is burdened by debts of approximately USD$460m.
