Supplier of Boeing and defense industries saddled with debts of 26 million shekels

C.M. Composite Materials, a supplier of components to Boeing, Israel Aerospace Industries, Rafael, and Elbit, has filed a request for a stay of proceedings after accumulating debts of 26 million shekels. The company employs 105 workers in Modi'in and cannot pay October salaries.

C.M. Composite Materials, a supplier of components to Boeing, Israel Aerospace Industries, Rafael, and Elbit, filed a request today (Sunday) in court for a stay of proceedings after accumulating debts of 26 million shekels. The company, controlled by Matanya (Mati) Moskowitz, employs 105 workers at its plant and offices in Modi'in, and claims that cash flow difficulties have halted its operations and that it cannot pay October salaries. The breakdown: 8.3 million shekels to banks and GSE Mezzanine, 5.3 million shekels to the National Insurance Institute and pension funds, 4 million shekels to employees, about 600,000 shekels to property lessors, and 6.5 million shekels to general creditors. The company explains the collapse by difficulties that began in 2022 with the COVID-19 pandemic, internal mismanagement, and unexpected expenses due to the security situation since October 7. Over the past year, about $8 million was injected into the company by the American company VisionWave, which wishes to continue supporting it. The company asks the court to allow its sale to a third party that will inject new capital.