Debts of 97 million shekels: The luxury car agency of Uri Dgani requests a stay of proceedings

Buy and Drive Holdings, which operates a luxury car agency, filed an urgent request for a stay of proceedings after accumulating debts of 97 million shekels. The company, operating since 1997, encountered difficulties due to a surge in interest rates, financing costs, new competition, and the Iron Swords War. The recovery plan is based on selling a property in Netanya for 51 million shekels.

Buy and Drive Holdings, which operates the luxury car agency Buy and Drive, filed an urgent request yesterday (Tuesday) with the Central District Court for a stay of proceedings, after accumulating debts of 97 million shekels. The company, operating since 1997, became a prominent player in the fields of buying and selling new and used vehicles, leasing, rental, and trade-ins. The shareholders are Uri Dgani and Yitzhak Maya. The request indicates that starting from the end of 2022, and especially in 2023, the company suffered upheavals that included a surge in interest rates, heavy financing costs, the entry of new competitors and electric vehicles, and the consequences of the Iron Swords War. Management embarked on a self-rehabilitation process that included reducing leasing activity, laying off employees, and repaying bank debts. The recovery plan is based on selling a property in Netanya for 51 million shekels plus VAT to Miara Finance, a move expected to cover secured debts and leave about 10 million shekels for creditors. However, liens imposed by VAT on the company's accounts and on a deposit of 5 million shekels threaten to thwart the arrangement. The company asks the court to stay proceedings, approve an operating plan, and appoint attorney Hovav Biton as settlement administrator, to enable saving the company as a going concern rather than liquidation.